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Policy Brief

The View from Tehran: The Iran War Shifts US-China Trade Talks

The upcoming US-China summit will take place under the shadow of the Iran war, which has reshaped the strategic environment in ways that favor Beijing. China has little incentive to abandon its economic and limited military support for Tehran, particularly as American resources and attention remain tied down in the Middle East. At the same time, US weapons depletion and dependence on Chinese-controlled rare earth supply chains have weakened Washington’s negotiating position. This commentary examines how the Iran conflict has deepened America’s vulnerabilities while enhancing Beijing’s leverage ahead of crucial trade talks.

8-minute read
12 May 2026

By Ali Ahmadi
Iranian security personnel beneath a portrait of Supreme Leader Ayatollah Mojtaba Khamenei during a rally in Tehran on 29 April 2026. The elusive leader has not been seen publicly since his appointment in early March 2026, fueling speculation about who is actually in charge in Tehran.
Iranian security personnel beneath a portrait of Supreme Leader Ayatollah Mojtaba Khamenei during a rally in Tehran on 29 April 2026. The elusive leader has not been seen publicly since his appointment in early March 2026, fueling speculation about who is actually in charge in Tehran.
8-minute read
The US and China will sit down for a major summit as part of their year-long efforts to resolve their trade disputes later this week. The summit has already been postponed once due to the Iran War but will take place now despite the war still being ongoing and only interrupted by a shaky ceasefire. While Iran will not be at the negotiating table, its leaders are watching this summit very closely. Iran-related issues are likely to be raised, and the trajectory of the conflict has materially impacted the balance of power between Washington and Beijing.

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