Parallel Economic Axis: How China Foiled Washington’s Siege on Iran?

Amid escalating US sanctions aiming to suffocate Iran’s economy, a strategic partnership emerged between China and Iran that turned the tables on Washington’s economic offensive. While the US persisted in tightening its financial blockade against Tehran, recent reports—including from the Wall Street Journal—revealed a sophisticated, secret financial channel linking Beijing and Tehran. This mechanism allowed Iran to export its oil to China and receive substantial revenues outside the reach of the conventional international system.

Through this channel, with over $8 billion in revenues within a single year, Iran has been able to revitalize key sectors like transportation, energy, airports, and infrastructure. The funds are funneled directly into major national projects spearheaded by Chinese state-owned companies operating in Iran—bypassing US oversight and international banking networks.

According to regional affairs expert Hekmat Amhaz, this collaboration cannot be separated from China and Russia’s outright rejection of American sanctions. These two powers are determined to establish new economic frameworks independent of the US dollar and the Western-controlled settlement system. Major economic groupings such as the Shanghai Cooperation Organization and BRICS are the backdrop for discussions aimed at building alternative financial infrastructures that support bilateral settlements—be it through barter, local currencies, or shared financial mechanisms.

The Iran-China economic relationship has evolved past isolated transactions and now demonstrates a fully integrated system backed by long-term agreements—most notably a 25-year strategic pact with China and a 20-year accord with Russia. As a result, a new wave of global alliances is redrawing the balance of power.

These alliances have given Iran remarkable resilience in the face of US sanctions, establishing it as a key player in engendering alternative economic models that circumvent dollar dependency and broaden influence between East and West. Experts view the China-Iran deal as more than a tactical victory; it signals the birth of a new economic bloc that is redefining global rules: an economy that operates beyond the dollar and alliances that challenge US dominance over the world’s financial norms.