China Uses Secret Network to Bypass US Sanctions on Iranian Oil with $8 Billion Infrastructure Swap

China has developed a covert barter-like system to circumvent U.S. sanctions and continue purchasing Iranian oil by exchanging oil shipments for infrastructure construction services in Iran, according to multiple reports including The Wall Street Journal and Newsmax. This arrangement, which reportedly funneled up to $8.4 billion in 2024, involves state-backed Chinese entities such as the insurer Sinosure and a financial intermediary named Chuxin that facilitate payments for major projects like airports and refineries. The system avoids the global banking channels targeted by U.S. sanctions, with oil shipments often transferred via ship-to-ship blending to obscure their origin. China denies awareness of the specific arrangement and opposes unilateral sanctions, while U.S. officials under President Trump have pledged to disrupt these financial streams that fund Iran's military activities. This hidden funding conduit deepens economic ties between China and Iran despite Washington's efforts to isolate Tehran, highlighting the challenges of enforcing sanctions in complex international trade networks.