US Launches Economic War Against Iran Through China and UAE
The United States has adopted a new strategy to pressure Iran economically, rather than through direct military confrontation. The White House has called for an immediate halt to oil purchases from Iran and the activities of front companies, money transfer channels, and any registration of ships that help Iran in any way.
Two key players in this effort are China and the UAE. China is the largest buyer of Iranian crude oil and a significant portion of Tehran's foreign exchange earnings come through Chinese refineries.
The US Treasury Department has been unable to fully trace China's complex financial mechanism, which includes the CPS interbank payment system as an alternative to SWIFT, shell trading companies in Hong Kong, Shenzhen, and Guangdong, and recording transactions in the names of third countries to eliminate Iran's footprint.
Beijing insists on this cooperation beyond purely economic considerations. China has lost Venezuela as a major oil supplier and billions of dollars in loans to Caracas have remained virtually uncollected.
The UAE has also played a significant role in protecting Iran's economic arteries against US sanctions. Dubai is home to thousands of Iranian companies, handles the bulk of Iran's imports, and provides Tehran with a channel for money transfers.