China Refuses to Comply with US Sanctions on Iran

At the recent Shanghai Cooperation Organization (SCO) summit in Bishkek, China's stance on US sanctions against Iran became clear. The SCO leaders' declaration called for a new development bank with 'maximum independence from the financial systems of states that weaponize economic tools to obtain unilateral advantages.'

The US had just announced its latest package of sanctions against Iran, but instead of isolating it, the country enjoyed a warm welcome in Bishkek. China's relationship with Iran is not motivated by moral or ideological reasons, but rather because it is in Beijing's interest.

China has been purchasing 90% of Iranian oil exports and using a sophisticated network of 'dark fleets' and 'teapot' refineries to evade US sanctions. Chinese banks and companies that do business with Iran often settle transactions in renminbi or through barter, making them immune to US extraterritorial jurisdiction.

China's support for Iran is not without its risks. If Iran were to lose, the Middle East would gravitate back into the US orbit, complicating China's growing influence in the region and threatening its energy interests.