Beijing, China – A Wall Street Journal report has revealed the nature of China’s support for Iran during the ongoing war. The report indicated multiple roles, including supplying Iran with military-grade materials, supporting its oil exports, and facilitating parallel financial channels.
indirect military support
The report stated that Chinese companies continued to supply Iran with materials that could be used in the manufacture of drones and rocket fuel, as well as electronic components used in weapons systems, despite international restrictions. It also noted dealings between Chinese satellite companies and the Iranian Revolutionary Guard.
Oil is the lifeblood of funding
China is Iran’s most important economic partner, importing about 90% of its oil exports, equivalent to 1.6 million barrels per day. This provides Tehran with billions of dollars in revenue annually. These deals are often conducted through independent refineries and intermediaries to circumvent sanctions.
Financial networks and circumvention of sanctions
The report explained that Iran relies on a parallel banking system, facilitated by China. Payments are made in yuan, and barter mechanisms are used to finance projects within Iran. Additionally, funds are transferred through intermediary companies and financial institutions, sometimes passing through Hong Kong. This helps circumvent international restrictions.
