China has pressed for the swift restoration of safe and open shipping through the Strait of Hormuz, as a dispute over proposed transit fees threatens to complicate a fragile peace deal between the United States and Iran.
Chinese Foreign Ministry spokesman Guo Jiakun told reporters at a press briefing in Beijing on July 3 that resuming safe and unimpeded passage through the strait serves the interests of all parties. He added that the disruption at Hormuz requires a proper settlement and that shared concerns across the international community need an appropriate response.
The comments follow a similar call by Chinese Foreign Minister Wang Yi in late June. Wang told Pakistan's Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar that normal navigation through the strait should be restored as soon as possible to protect the stability of global industrial and supply chains. He said any arrangements concerning the strait must respect the sovereignty and legitimate rights of coastal states while also meeting international practices and the expectations of the wider world.
The backdrop to Beijing's statements is an uneasy ceasefire between the United States and Iran. The two countries are bound by a memorandum of understanding that commits Iran to clearing the strait of mines and obstacles within 30 days and allowing free commercial transit for 60 days. After that period, Iran and Oman are expected to conduct dialogue to define the future administration and maritime services in the strait.
Iran has signaled it intends to introduce fees once the 60-day window closes. Tehran insists it is not seeking transit tolls but plans to charge for navigation services, environmental protection, ship insurance, and other services it says are necessary. Iran established the Persian Gulf Strait Authority earlier this year to manage what it calls safe passage permits.
Iran and Oman announced in late June that they would study the costs of services to be provided in administering the waterway through a joint working group, pressing ahead with those discussions despite US opposition to any form of toll system.
Washington has pushed back firmly. US Secretary of State Marco Rubio said during a regional tour that Iran would not be permitted to charge tolls or fees for ships transiting the strait under any final agreement with the United States.
Oman's Foreign Minister said in an interview that Oman does not support imposing fees on ships but drew a distinction between mandatory charges and voluntary fees to help maintain the waterway, in a manner similar to models used elsewhere.
Bloomberg News reported that some European powers, speaking privately, are treating the prospect of some form of service fee as likely, even as the US and Gulf Arab countries continue to publicly oppose any charges.
China's stake in the outcome is direct. As the world's largest importer of oil and natural gas, China depends heavily on the Persian Gulf region for energy supplies, and those cargoes must pass through the narrow Hormuz waterway before reaching global markets. In March, Beijing had already called on parties to the fighting to ensure the safe passage of commercial ships through the strait.
Passage fees of this kind are not charged anywhere else in the world for transit through natural channels. The Strait of Malacca and the English Channel carry comparable volumes of trade and do not levy such charges. Legal experts say the question of whether fees are permissible under international law remains unsettled. A professor of law at the University of Geneva told one news outlet that fees would be incompatible with the rules governing transit passage through a strait that links sections of the high seas, but added that the legal issue has not been conclusively resolved.
Commercial shipping through the strait has surged over the past several weeks, with US military support helping push oil flows to more than 10 million barrels per day. Saudi supertankers have been exiting the strait in increasing numbers, with four vessels hauling crude from Saudi Arabia's main export hub spotted in the Gulf of Oman last week, the largest number of exits since the peace pact took effect.
The 60-day free passage period under the US-Iran agreement is due to expire in mid-August. Diplomatic talks between Washington and Tehran continued in Doha last week, with the status of the strait among the key points of contention. No final agreement on fees or long-term administration of the waterway has been reached.