Strategy Based on 8 Billion Dollar Petroleum from China and Iran

Secret Payment System for Oil Trade

China has developed an innovative secret payment system to finance its oil imports from Iran without being affected by US sanctions. According to information shared by Western officials, this system indicates that Beijing conducts crude oil purchases from Iran through a "barter-like" mechanism.

Beijing's Infrastructure Projects and Payment Mechanism

According to this clever arrangement, Iran ships crude oil to China, while Chinese state companies undertake various infrastructure projects in Iran and make payments to finance these projects. This situation strengthens the commercial bond between the two countries and enhances Iran's economic independence.

A Financial Breathing Space Network

According to a report from the Wall Street Journal, this secret financial network operates through Sinosure, China's state export-credit insurance agency, and a lesser-known financial institution called Chuxin, which operates outside the official banking system. This method provides Tehran with significant financial breathing space against US efforts to cut off Iran's oil revenues, as it remains outside international payment systems.

Significant Data for 2023

According to Western sources, approximately $8.4 billion worth of oil payments were made through this secret channel just last year. This amount has played a critical role in financing infrastructure projects under China's leadership. Additionally, based on information from the US Energy Information Administration (EIA) and other diplomats, Iran is expected to export a total of $43 billion worth of oil by 2024, with approximately 90% of the exports projected to go to China.

Conclusions on China’s Energy Strategy

These developments are a striking example of the effectiveness of US sanctions and China's strategy to turn to alternative payment mechanisms in global energy trade. The collaboration between Iran and China has the potential to contribute to the formation of new dynamics in the global energy market.