China in Direct Talks With Houthis to Secure Red Sea Shipping Routes, Sources Say

China has held direct talks with Yemen's Houthi movement to secure safe passage for its commercial vessels through the Red Sea, according to six sources with knowledge of the matter. The diplomatic engagement aims to keep vital oil shipments flowing after the Iran-aligned group pledged to block access to Saudi Arabian ports.

Securing a Vital Waterway

Beijing reportedly asked the Houthis for a direct promise of safety for its tankers transiting the Bab el-Mandeb strait, a critical chokepoint at the southern end of the Red Sea. The move is intended to maintain oil exports from Saudi Arabia's Red Sea terminals, particularly Yanbu, as China seeks to offset supply disruptions from the Strait of Hormuz, an Iranian official told Reuters.

According to one source, Chinese officials are clearing each vessel's passage individually with the Houthis. Both parties have kept Iran informed of their actions, two regional officials briefed by Tehran said. The talks underscore China's efforts to protect its energy supply chain amid escalating regional tensions.

Market Impact and Disruptions

Despite the negotiations, the Houthi blockade, announced on July 20, continues to disrupt maritime traffic. The group has warned international shipping firms that vessels calling at Saudi ports could be attacked. At least four tankers bound for China have successfully loaded crude from Saudi ports and passed through the strait since the restrictions were announced, according to Kpler and LSEG ship tracking data.

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However, safety concerns persist. Two separate Chinese trade sources confirmed that some tankers have altered their course to avoid the area. Key examples include:

• The New Champion supertanker, which was scheduled to load oil at Yanbu, sailed back out of the Gulf of Aden.
• The New Prime supertanker, already loaded with oil, also reversed its course.

Context and Strategic Calculations

The Houthis recently claimed missile and drone strikes on two Saudi oil tankers, the *Encelia* and the *Layla*, with maritime security sources confirming the attack on the *Encelia*. Such attacks highlight the significant risks to shipping in the region.

Navigating the Red Sea route from Yanbu to Asia takes approximately 16 days. The alternative, sailing around Africa, is significantly longer and more costly, taking an average of 50 days. According to two sources close to the Houthis, the group has maintained good relations with China, which may facilitate the ongoing arrangements for safe passage.