Foreign Ministry Spokesperson Guo Jiakun’s Regular Press Conference on June 23, 2025

Premier Li Qiang's attendance at the Annual Meeting of the New Champions in Tianjin, with record international participation, signals China's strong push for multilateralism and economic globalization amidst global economic slowdown and rising protectionism. Concurrently, China is actively engaged in Middle East diplomacy, co-sponsoring a UN Security Council resolution with Russia and Pakistan condemning U.S. actions against Iran's nuclear facilities and urging de-escalation around the critical Strait of Hormuz, a vital trade route. Furthermore, China is strengthening trilateral cooperation with Bangladesh and Pakistan, focusing on economic development and regional stability within the Belt and Road framework, while also completing large-scale evacuations of its citizens from the conflict-affected Middle East.

Analysis

China is executing a dual strategy of promoting economic multilateralism while actively engaging in high-stakes diplomacy to manage escalating geopolitical risks. The upcoming Annual Meeting of the New Champions (AMNC) in Tianjin, marked by record international participation, is being positioned by Beijing as a key platform to counter rising unilateralism and reinforce its centrality in global trade. This pro-globalization messaging contrasts with the severe tensions in the Middle East, where China is taking a direct diplomatic role by co-sponsoring a UN Security Council resolution with Russia and Pakistan to condemn attacks on Iran's nuclear facilities. The most acute financial risk highlighted is the potential closure of the Strait of Hormuz, a critical chokepoint for global energy and the transit route for nearly half of China's oil imports. Beijing's confirmation of high-level communication with Tehran to de-escalate the situation is a crucial signal for energy markets. The completed evacuation of over 3,600 Chinese nationals from Iran and Israel underscores the government's perception of the high risk of regional conflict. Concurrently, China is strengthening its sphere of influence through enhanced trilateral cooperation with Bangladesh and Pakistan, focusing on economic development to advance its Belt and Road Initiative.

Key Decisions for Investors

• Investors should closely monitor developments around the Strait of Hormuz, as any disruption presents a significant upside risk to oil prices and global shipping costs, directly impacting energy and logistics sectors.
• The upcoming AMNC event should be watched for specific policy announcements or partnership deals that could signal the near-term direction of China's economic policy and foreign investment climate.
• The deepening diplomatic alignment between China, Russia, and Iran warrants a re-evaluation of geopolitical risk within portfolios, particularly concerning supply chain vulnerabilities for companies reliant on Middle Eastern or Eurasian trade routes.
• Given that China has evacuated its citizens, investors should interpret this as a signal of Beijing's assessment of a high probability of further regional conflict, suggesting a cautious or hedged stance on assets exposed to the Middle East.