Wall Street Journal: China provides support to Iran ranging from oil to missile components

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.