China pays for Iranian oil through barter infrastructure deals — WSJ

China has been receiving Iranian oil under a barter arrangement in which Beijing funds and builds infrastructure projects in Iran instead of making direct financial payments, The Wall Street Journal reports, citing Western officials.

According to the report, Chinese entities — including the state-owned insurer Sinosure and financial firm Chuxin — are involved in facilitating the transactions, which bypass the international banking system. A portion of the oil payments is directed toward financing major infrastructure projects.

In 2023 alone, about $8.4 billion from Iranian oil proceeds were used to fund large-scale infrastructure projects built by China in Iran. Since the early 2000s, China has pledged around $25 billion in infrastructure investment in the country, with the scale of such projects increasing notably since 2021.

Beyond infrastructure development, Iran also uses part of its oil revenues to purchase Chinese goods directly, deepening its economic reliance on Beijing amid ongoing Western sanctions.

By Khagan Isayev