Xi Wants the Strait of Hormuz Reopened; Cakes and An E-Commerce Crackdown; The Next Stage of Decoupling; The MATCH Act in Congress

In a rare phone call with Saudi Crown Prince Mohammed bin Salman, President Xi Jinping publicly called for the swift reopening of the Strait of Hormuz, emphasizing that normal passage is vital for regional economies and global energy markets. The strait carries the bulk of China’s imported crude and petrochemical feedstocks, so any prolonged closure threatens Chinese manufacturing and its strategic stockpiles. Xi’s statement also signaled Beijing’s desire to appear a stabilizing diplomatic force, even as Tehran’s naval actions continue to disrupt traffic.

The United States escalated tensions by boarding a container vessel—identified as the Tuska—departing China’s Zhuhai port. Intelligence linked the cargo to sodium perchlorate, a key precursor for solid‑rocket fuel used in Iran’s missile program. While Washington has not confirmed the exact contents, the incident fueled speculation that China’s trade may be indirectly supporting Tehran’s ballistic‑missile capabilities. President Trump’s remarks about a “gift from China” and the looming 50% tariff threat on any country shipping military‑grade goods to Iran underscore how commercial disputes are becoming entangled with security policy.

Beyond the immediate crisis, the episode illustrates the broader trajectory of U.S.–China decoupling. Beijing must juggle its deepening partnership with Russia, its lucrative oil imports from Gulf states, and growing U.S. pressure such as the MATCH Act and a crackdown on Chinese e‑commerce platforms. While China retains short‑term cushioning through oil reserves, its limited leverage over Iran and the volatile geopolitics of the Persian Gulf mean that Beijing’s long‑term strategy will focus on diversifying supply chains, reinforcing ties with Saudi Arabia and the UAE, and navigating an increasingly hostile Western regulatory environment.