Secret Oil and Favor Exchange System

The Exchange of Favors between China and Iran has proven to be an innovative strategy in a scenario of international sanctions.

The Chinese regime has established a secret system that allows it to continuously purchase Iranian oil, bypassing US-imposed restrictions.

In this article, we will explore how this exchange mechanism benefits both nations, the role of Chinese state-owned enterprises and the use of the secretive Chuxin financial institution to facilitate infrastructure investments in Iran, and the importance of Sinosure in Iran's economic sustainability, even in the face of global financial isolation.

Secret Iranian Oil Import System

The Chinese regime has developed a secret system to continue its oil imports from Iran while circumventing US sanctions.

Using a 'trick-or-treating' mechanism, China ensures that Iran receives infrastructure in return rather than direct cash payments.

This process is supported by a confidential financial institution, allowing Iran to keep its economy functioning despite global financial isolation.

Financial Favors Exchange Mechanism

China and Iran have developed an intricate system of exchange of favors that defies US sanctions.

First, significant amounts of oil are shipped from Iran to China.

This oil is then monetized indirectly through deposits made in an institution called Chuxin, an essential pillar in this exchange operation.

Sinosure, a Chinese state-owned insurer, ensures that all financial risks are mitigated.

With funds secured, China is executing major infrastructure projects in Iran.

In summary:

• Oil shipment →
• Deposit in Chuxin →
• Completed works

This approach helps keep the Iranian economy running by transforming natural resources into structural development.

Deposit of Values at the Chuxin Institution

A Chuxin plays a central role in the scheme involving China's purchase of Iranian oil, acting as a veritable coffers of Chinese state-owned companies.

This clandestine institution allows the value from oil transactions to flow, replacing the traditional use of money, allowing an efficient exchange of materials and services.

Backed by the authority of the state-owned insurer Sinosure, Chuxin uses this structure to finance massive projects in Iran, such as airports and refineries, ensuring that the financial flow does not cease, even with the international sanctions in force.

Thus, it consolidates itself as a strategic link essential and confidential between the two countries.

Sinosure Guarantee and Iran's Economic Sustainment

Sinosure plays a crucial role in sustaining Iran's economy through its robust export credit insurance system.

As a state-owned insurer, Sinosure covers financial risks associated with commercial transactions with Iran, ensuring that infrastructure projects, such as airports and refineries, maintain their progress even in the face of strict sanctions.

This operation takes place through a model where Iranian oil is exchanged for large projects carried out by Chinese companies.

The coverage of Sinosure acts as a link that keeps the financial gears active, facilitating the economic viability of projects and ensuring that contracts are fulfilled without obstacles.

Since 2018, with the reimposition of US sanctions, the mechanism supported by Sinosure has become vital to the Iranian economy.

The availability of financing for infrastructure projects eases economic pressure on Iran, creating opportunities for employment and development.

Oil swaps instead of direct cash payments help Iran mitigate adverse financial impacts and avoid complete isolation from the global financial system.

This unique and ingenious approach to financial operations maintains Iran's economic resilience, ensuring a solid foundation for its domestic growth.

Oil-Financed Infrastructure Investments

The system China created to circumvent US sanctions, involving a barter mechanism between Iranian oil and infrastructure, has been crucial to the Iranian economy.

Using deposits at the Chuxin financial institution, these resources are directed to large infrastructure projects in Iran.

Among them, the construction of airports modern and refineries sophisticated, which not only help to move the economy, but also expand the country's production and logistical capacity.

These concrete projects reflect the strategic trade-off between natural resources and economic development, ensuring that Iran keeps its infrastructure up-to-date and competitive.

To illustrate the direct impact of this strategy, below is a comparative chart of projects:

The agreements signed between Chinese state-owned companies and the Iranian government thus become a clear demonstration of how cooperation between countries can overcome economic and political barriers.

This approach ensures that both countries maintain a mutually beneficial relationship, necessary for continued growth in the face of all the trade and financial challenges imposed on the international scene.

In summary, the secretive trade system between China and Iran, anchored in the Exchange of Favors, exemplifies how countries can adapt and prosper, even under external pressure.

This dynamic could have significant implications for the region's economic and geopolitical future.