Home World China indirectly funding Iran-backed Houthi attacks on Western ships with sanction breach

China indirectly funding Iran-backed Houthi attacks on Western ships with sanction breach

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.

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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.”

Disruption to Chinese sea trade comes as the European Union Chamber of Commerce in China warned that uncertainty and “draconian regulations” have drastically raised risks for foreign businesses in China.

A new study, compiled by the chamber and the China Macro Group consultancy, echoes concerns that have been raised by European and American companies operating in China.

Foreign investment fell 8 percent last year from a year earlier as companies recalibrated their commitments in the world’s second largest economy.


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