Despite an optimistic start, the Mar. 2023 China-brokered agreement between Iran and Saudi Arabia to restore diplomatic ties faces an uncertain future. Anticipating potential setbacks, Beijing has ramped up its diplomatic engagement in the region, particularly in Yemen—a critical flashpoint that has been stuck in a fragile stalemate for close to three years. China’s key objectives are to preserve the progress achieved through the Beijing Accord, sustain the Iranian-Saudi detente, and prevent a renewed escalation in Yemen—which risks drawing Riyadh and Tehran back into confrontation.

The Iranian-Saudi normalization agreement emerged against the backdrop of strained Saudi-US ties under the Joe Biden...