Houthis spare Chinese car ships, but others aren’t so lucky - here's the surprising reason

Since the end of 2023, commercial vessels transiting through the Red Sea have been constantly threatened as the Houthi militia in Yemen started attacking ships in what they referred to as an act of solidarity with Palestinians in Gaza, as per a report. However, unexpectedly this summer, there has been a sudden exception: Chinese-made car-carrier ships are making it through unscathed, as per a Jalopnik report.

Chinese Ships Mysteriously Spared from Houthi Threat

As per the report, the reason driving this exception could be that China facilitated a back-channel agreement with the Houthis directly or, more probably, through Iran, which is the group's main sponsor, according to the Jalopnik report. Iran, a huge oil exporter, depends on China as its biggest customer, according to the report. That provides Beijing huge leverage, and it seems they've exercised it to discreetly shield a rising pillar of their economy, the increasing export of Chinese automobiles, as per the Jalopnik report.

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Not All Chinese Ships Protected, Only Car Carriers

Interestingly, the deal appears to be highly specified, even a few non-Chinese vessels carrying Chinese cars have also been left untouched, according to the report. But Chinese ships that are not carrying cars still steer clear of the route altogether, which hints that the deal might be applicable only to car carriers, as per the Jalopnik report.

China Ramps Up Car Exports to Europe in 2025

This move coincides with China's growing presence in the European car market, as per the rpeort. In April 2025, Chinese vehicles represented close to 5% of the market, whic almost double of what it was only a year ago, according to the Jalopnik report.

The S&P Global analysts have predict that could rise to 10% by 2034, as per the report. But the journey has not been smooth as the European Union has reacted by slapping high tariffs on Chinese vehicles that are subsidized by the state, with tariffs rising as high as 35%, as reported by Jalopnik.

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Red Sea Shortcut Offers Huge Advantage to Chinese Automakers

Since cheap prices are one of the main reasons for the demand of these vehicles, these companies are desperate to find ways to compensate for the tariffs, according to the report.

By avoiding the Red Sea, these ships adds 14 days to 18 days to the voyage, which is a lot of additional costs for fuel, crew, and maintenance, as per Jalopnik. That would be about a few hundred dollars per car and because some of China's massive new ships can carry 5,000 cars each, the financial impact is in the millions, according to the report. If those ships can just take the shortcut via Red Sea, that would be huge savings for carmakers that they can either pocket or pass on to consumers, as reported by Jalopnik.

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FAQs

Why aren't Chinese car carriers being attacked?
China may have brokered a quiet deal with the Houthis or their backers, likely Iran, to protect its car exports, as per the Jalopnik report.

How important is the Red Sea route for shipping?
Very important, it’s the fastest link between Asia and Europe. Avoiding it adds 14 to 18 days to the journey.