A New Chapter in Global Escalation
Israel’s attack on the heart of Iran in June 2025 was not just the latest episode in the long history of the Middle East conflict. It was a loud signal that great power rivalry is now transforming into an open struggle, with Asia and the Global South as the main arenas of interest. For China, which has always maintained a balance between Iran and Israel, this war is a real test of its diplomatic strategy and national interests.
China: From Balancing to Taking Sides?
China has historically pursued a policy of “dual engagement” in the Middle East—strengthening economic ties with Israel while building a strategic partnership with Iran, especially in the areas of energy and security. However, the 2025 war revealed a significant shift in Beijing’s attitude. Just a day after the Israeli attack, China’s Ambassador to the UN, Fu Cong, openly called Israel’s actions a violation of Iran’s sovereignty and territorial integrity, while urging an end to Israel’s “military adventurism.” This strong statement was reinforced by President Xi Jinping and Foreign Minister Wang Yi, who reiterated their support for Iran’s right to self-defense and rejected further US military involvement.
This policy is not just rhetoric. China is a major buyer of Iranian oil, with more than 80% of Iran’s oil exports going to China—even amid Western sanctions. The 25-year partnership signed in 2021 deepens energy dependence and infrastructure investment, making Iran a key pillar of the Belt and Road Initiative (BRI) in the region. This relationship, economically and geopolitically, positions China as the main defender of Iran’s interests in global forums.
However, this position carries significant risks. China-Israel relations, which previously flourished in the technology and infrastructure sectors, are now experiencing serious rifts. Israel and its Western allies see China’s stance as a bias that undermines trust and narrows the space for dialogue. Iran, on the other hand, views China as an important strategic partner in the face of Western pressure, although it remains aware of the limits of Beijing’s commitment to direct military involvement.
Immediate Impact on Asia and the Global South: Energy, Economics, and Uncertainty
The domino effects of the conflict were immediately felt in Asia and the Global South. The surge in world oil prices—topping $75 per barrel—triggered inflation, increased the fiscal burden on energy-importing countries, and depressed people’s purchasing power. Indonesia, India, and ASEAN countries immediately evacuated residents from conflict zones, strengthened energy reserves, and prepared for economic contingency scenarios.
Asia’s dependence on Middle Eastern energy has now become a strategic vulnerability that cannot be ignored. Any threat to the Strait of Hormuz, a vital route for one-third of the world’s oil supply, immediately shakes markets and creates investment uncertainty. For countries in the Global South, energy price volatility means the risk of slowing growth, weakening currencies, and rising living costs—issues that exacerbate inequality and increase the potential for domestic political instability.
China as Mediator: Ambitions, Challenges, and Realities
China is seeking to capitalize on this momentum to assert itself as a global mediator. Beijing has actively offered itself as a mediator, pushed for a ceasefire, and called for multilateral dialogue in forums such as the UN and the Shanghai Cooperation Organization (SCO). In its official narrative and state media editorials, China has emphasized the importance of a political solution, respect for sovereignty, and rejection of Western-style “unilateral intervention.”
However, the effectiveness of China’s mediation role faces real limitations. China’s influence over Israel is very limited, given Tel Aviv’s closeness to Washington and skepticism of Beijing’s neutrality. On the other hand, China’s over-involvement risks provoking a confrontation with the United States, which remains the dominant player in the Middle East. The reality on the ground shows that while China has been able to construct a narrative as a new counterbalance, its ability to truly change the dynamics of the conflict is still constrained by its limited military and political leverage.
Strategic Implications: Global Polarization and the Future of Asia
The Iran-Israel conflict deepens global polarization between Israel’s pro-Israel bloc (the US and its Western allies) and Iran’s pro-Iran bloc (China, Russia, and much of the Global South). Asian and Global South countries are now faced with a strategic dilemma: balancing relations with the two great powers without getting caught up in a rivalry that could undermine regional stability.
For China, this conflict is a test of its ambition to become a leader of the Global South and a counterweight to Western dominance. Beijing’s firm stance in defending the principle of sovereignty and rejecting military intervention is a strong message to developing countries that have long felt marginalized in the global order. However, the challenge ahead is how to transform this diplomatic capital into real influence in resolving conflicts and building inclusive collective security mechanisms.
Conclusion: Asia and the Global South as Deciders of the Future
The Iran-Israel conflict and China’s response mark a new chapter in world geopolitics. Asia and the Global South are no longer spectators, but rather determiners of the future of the global order. By strengthening solidarity, policy innovation, and collective diplomacy, developing countries can take a greater role in maintaining world peace and prosperity. The challenges are great, but the opportunities to build a more inclusive and equitable world order are now wide open—and China, along with Asia and the Global South, is at the center of that change.