WASHINGTON (Dispatches) -- China is purchasing billions of dollars’ worth of oil from Iran by bartering oil in exchange for infrastructure projects, the Wall Street Journal (WSJ) reported.
“The economic ties between the two U.S. rivals is in defiance of Washington’s efforts to isolate Iran.”
Upon coming to power in January, U.S. President Donald Trump said he was imposing a “maximum pressure campaign” to stop Iran’s oil trade using economic sanctions.
However, Iranian exports reached a multiyear peak in June before the U.S. and Israel’s 12-day imposed war on the Islamic Republic.
Citing current and former officials from several western countries, the WSJ described the barter system as follows: “Iranian oil is shipped to China–Tehran’s biggest customer – and, in return, state-backed Chinese companies build infrastructure in Iran.”
The barter system has enabled Tehran to receive up to $8.4 billion in infrastructure projects last year, the WSJ added.
According to the report, state insurer Sinosure channels Chinese funds from oil purchases to pay Chinese contractors working in Iran through a financial vehicle called “Chuxin.”
China has bought over 90 percent of Iranian oil exports in the past few years, an average of 1.43 million barrels per day (bpd) in 2025, the news agency added.
Beijing’s Foreign Ministry told WSJ it was “unaware” of the barter arrangement and “opposes illegal unilateral sanctions.”
China has stated that its oil trade with Iran conforms with international law, and that unilateral U.S. sanctions on Iran are illegitimate.