China has reportedly built a complex network to secretly pay Iran for oil, allowing both nations to bypass U.S. sanctions. This hidden system, known as the “secret payment of oil” method, blends crude trade with infrastructure projects to conceal transactions.
According to reports, Iranian oil is sold to Chinese buyers, who then deposit payments into accounts held by a shadowy Chinese financial firm called Chuxin. Instead of sending money directly to Iran, Chuxin redirects the funds to Chinese construction and engineering companies operating inside Iran. These firms complete infrastructure projects—such as roads, housing, and energy developments—effectively turning oil revenue into tangible investments.
Many of these projects are insured by China’s state-owned insurer Sinosure, giving them a layer of protection despite the risk of violating U.S. sanctions. To further obscure the oil’s origin, tankers reportedly conduct ship-to-ship transfers in international waters, making it difficult to trace the cargo’s source.
Analysts estimate that the secret payment of oil scheme moved as much as $8.4 billion through Chuxin last year. Iran’s total oil exports were around $43 billion in 2024, with China buying nearly 90% of it—mostly through this hidden network.
The U.S. has imposed sanctions on smaller participants in the trade, but major state-linked companies have largely escaped penalties. Chinese officials deny involvement, insisting that trade with Iran is legitimate and compliant with international law.
Experts warn that this growing system strengthens ties between Beijing and Tehran while weakening the impact of Western sanctions. It gives Iran steady economic support and provides China with discounted crude oil, reinforcing both countries’ strategic interests.
In essence, the secret payment of oil network allows China to continue importing Iranian crude without using traditional banking systems, challenging U.S. efforts to isolate Tehran economically.
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