In the current international and regional conflicts, the Chinese Communist Party (CCP) is pointed out by US think tank experts as Iran’s largest trading partner and lifeline. The CCP hopes Iran will continue to play the role of a “useful anti-American partner.” Despite not wanting the Middle East conflict to escalate and affect its own energy supply, the comprehensive support provided by China to Tehran has become key to Iran maintaining political stability.
Thursday, April 30th, experts from the Washington-based think tank Foundation for Defense of Democracies (FDD) China Project Director Craig Singleton and senior analyst Jack Burnham published an analysis article. They stated that China’s approach towards Iran is based on “opportunism,” aiming to use Iran to contain the United States while safeguarding its own interests.
Experts believe that Beijing supports Tehran on five levels to ensure Iran remains a useful anti-American partner while minimizing the risk of damaging its own interests, particularly avoiding triggering stronger US actions that could disrupt the current US-China trade truce.
The report highlights five major forms of support Beijing provides to Iran:
Firstly, China has become a crucial supporter of Iran’s struggling oil industry. Despite US sanctions and challenges in exporting oil, Beijing remains Iran’s main hope for relief by purchasing approximately 95% of Iran’s oil exports at discounted prices, saving Beijing about $4 billion annually.
The trade relationship is robust; during a 12-day conflict between Tehran, Israel, and the US in June 2025, Beijing’s purchase of Iranian oil reached a historic high. Even during the ongoing war, China continues to import Iranian oil from tankers in Southeast Asia, facilitating ship-to-ship transfers near Indonesia and Malaysia before transporting to China’s “teapot” refineries.
Experts note that China’s procurement of Iranian oil is crucial in supporting Tehran’s resistance capabilities as half of Iran’s oil revenue funds its armed forces.
Iran’s ballistic missile program heavily relies on key components and chemical materials from China. In early 2025, China delivered over 1,000 tons of sodium perchlorate, a critical component in solid rocket fuel, to Iran.
Despite US sanctions on Shenzhen Amor Logistics Co Ltd, Chinese supply activities continue, even during intense military actions between the US and Iran in April.
Experts state that China’s financial system serves as a crucial means for Iran to avoid economic collapse during the US operation Economic Fury. Chinese small banks like Kunlun Bank are reportedly involved in money laundering and yuan settlements for oil trade.
Notably, the China International Payment System (CIPS) witnessed a surge in transactions during the conflict, with daily turnover increasing from $850 billion to $1.3 trillion, possibly linked to Iran’s request for ships passing through the Strait of Hormuz to pay tolls in yuan.
Experts suggest that Washington has targeted these financial infrastructures, with US Treasury Secretary Scott Bessent warning two unnamed Chinese banks about potential secondary sanctions for their ties with Iran and imposing sanctions on China’s second-largest teapot refinery, Hengli Refinery.
Iran’s precision strikes on US military targets likely benefited from data provided by Chinese commercial satellite companies. Companies like MizarVision and Emposat reportedly offered high-definition satellite images of American assets and bases to Iran’s Revolutionary Guards.
Moreover, Beijing allows its suppliers to assist Houthi armed forces in developing drone and missile capabilities for strikes in the Red Sea.
On the diplomatic front, Beijing actively shields Iran from international pressure by vetoing resolutions aimed at reopening the Strait of Hormuz in the UN Security Council and condemning US blockades as “dangerous and irresponsible.”
Chinese officials consistently portray Iran’s nuclear facilities as peaceful and advocate for Iran’s rights under the Nuclear Non-Proliferation Treaty to counter US pressure in diplomatic arenas.