China has been funding the Iran-backed Houthi movement that has been plaguing Western military and cargo ships in the Red Sea for months, Western intelligence has warned.
The Houthis have repeatedly targeted Western-flagged ships transiting through the sea inlet between Asia and Africa after pledging their unflinching support to Hamas following Israel’s declaration of war.
The ongoing blockade has had considerable repercussions on shipping, as approximately 15 percent of global trade operates through the Red Sea into the Suez Canal.
China is estimated to buy as much as 90 percent of Iran’s oil, including crude sold by the paramilitary arm of Tehran’s Islamic Revolutionary Guards (IRGC).
The organisation, the Quds Force, has been known to fund and train militants operating across Iran’s terror proxies in the Middle East, including the Houthis.
But because of the impact the Yemen-based group has had on international trade, they are also indirectly causing severe issues for Beijing.
One intelligence official told POLITICO: “I’m not sure they’re aware they’re cutting off the branch they’re sitting on.”
The Houthis has pledged not to target Chinese ships but only this week the militants fired multiple missiles at the Chinese-owned ship Huang Pu, causing minor damage.
Iran has been under considerable financial pressure for years as the Tehran regime’s hostile conduct resulted in a swathe of international sanctions limiting its sales.
The Raisi government has been allotting oil to the Quds Forces to sell through an intricate network of front companies and China has benefitted from hefty discounts as it opposed the sanctions.
But with the Houthis persistently attacking ships passing through the Red Sea, traffic has dropped by approximately 60 percent and forced shipping companies to reroute around the Cape of Good Hope.
The changed path can add up to 14 days to the navigation and threatens to halt the fine-tuned supply chain on which Chinese exports depend.
Trade policy analyst Julian Hinz said: “The main effect is the longer time at sea. It’s very important for China that global trade routes function without interruption.”
But with the Houthis persistently attacking ships passing through the Red Sea, traffic has dropped by approximately 60 percent and forced shipping companies to reroute around the Cape of Good Hope.
The changed path can add up to 14 days to the navigation and threatens to halt the fine-tuned supply chain on which Chinese exports depend.
Trade policy analyst Julian Hinz said: “The main effect is the longer time at sea. It’s very important for China that global trade routes function without interruption.”
Source » express