The Red Sea blockade by Yemen’s Houthi militia has delivered an unlikely win for Chinese shipping. While Western and other shipping firms detour around Africa, adding significant time and cost, Chinese ships enjoy relative safety and mostly steady access through the Suez Canal.
This affords China faster, cheaper trade lanes and reinforces its strategic positioning and illustrates how geopolitical maneuvering is reshaping global maritime flows.
Through savvy diplomacy, messaging, naval escorts, and perhaps technological cooperation, Chinese-linked vessels continue transiting the vital Suez corridor while many competitors are forced to reroute.
Selective safe passage deal
From late 2023 into early 2025, the Iran-aligned Houthi militia declared that Chinese and Russian vessels would be spared from their strikes. These assurances were reportedly delivered through back-channel diplomacy during talks between Houthi leaders and Chinese officials in Oman.
The Houthis targeted only vessels they believed supported Israel and its Western allies while leaving Chinese and some other flagged ships unscathed.
A surge in Chinese transit and tactical messaging
The share of China-linked container ships transiting the Red Sea has surged dramatically in the past year. Early this year the percentage of Chinese-linked ships passing through the Red Sea jumped to more than 24%, up from under 15% in earlier times.
Maersk Shifts Services from Red Sea Gateway Terminal to Dubai Port World Terminal
Smaller Chinese carriers have also seized the opportunity. Sea Legend has launched a niche China-Turkey route via the Red Sea, even calling at Yemen’s Aden and Hodeidah - a port under Houthi control. Others like Transfar, Fujian Huihai Shipping, and China United Lines have similarly redeployed ships to the corridor.
To signal safe passage, these ships broadcast AIS messages like “Chinese vessel - no contact with Israel” or “All Chinese” as they moved through the zone - essentially wearing their identity as a protective badge.
Sea Legend has been escorted by Chinese PLA Navy convoys. This added layer of security is rare in the region and gave those vessels a distinctive edge.
Economic and strategic windfall
The Red Sea–Suez route remains the fastest sea corridor between Asia and Europe. Avoiding the detour around Africa saves around 10 extra days per voyage translating into massive savings in fuel, crew costs and time, especially for car carriers carrying thousands of vehicles.
Some estimates suggest this shortcut grants an “artificial competitive advantage” over Western shippers who incur the extra time and cost. As European automakers grapple with rising costs from tariffs, cheaper Chinese cars with faster, cheaper shipping have gained a market edge.
Beneath the surface, reports indicate that Chinese firms have provided dual-use technology, including satellite imagery and drone/missile components, to the Houthis - possibly improving targeting precision and reinforcing the safe passage arrangement.
Not Without Risks
Despite this relatively smooth transit, not all Chinese vessels remain immune. One notable example: the Hong Kong-flagged ASL Bauhinia -carrying hazardous cargo and an all-Chinese crew - suffered a catastrophic fire in Red Sea waters in January 2025.
The incident was not blamed on Houthi action, but it showed that transit through the corridor remains perilous—and not risk-free for Chinese ships either.
More recently, even vessels tagging themselves as Chinese or with “All crew Muslim” labels were attacked, suggesting the intelligence capabilities of the Houthis are improving - and previous immunity may not be absolute.
Advantage China
With geopolitical tensions mounting and US sanctions in place, the calculus for China is complex. But for now, the Houthis’ blockade is delivering Beijing tangible economic and strategic gains - at least as long as the truce holds and messaging remains effective.
Between the diplomatic alignments, the tactical messaging, the naval cover, and the economic upside from safer, faster shipping, Chinese ships are undeniably getting a leg up amid the chaos of the Red Sea blockade.
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