The Iran War Looks Very Different From China

Smoke and dust rise after an Israeli strike on Beirut's southern suburbs, following an escalation between Hezbollah and Israel amid the U.S.-Israeli conflict with Iran, Lebanon, March 2, 2026. REUTERS/Mohamed Azakir

The United States and Israel have launched strikes on Iran, killing Supreme Leader Ali Khamenei and triggering a full-scale war in the Middle East. As the region descends into conflict, a fascinating debate has emerged about what this means for China: from the surge in Chinese defense stocks and weapons export opportunities, to the collapse of Beijing’s landmark Saudi-Iran diplomatic agreement. 

Is this a strategic disaster for China, or does the chaos actually create unexpected openings?

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by Eric Olander

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