Why China Opposes U.S. Iran Sanctions

A cynic would expect that Chinese business leaders welcome the other countries’ supplementary sanctions because they leave Chinese companies as one of the few commercial partners for Iran. PRC firms have been eagerly “backfilling” for Western firms that have been exiting Iran’s energy and other sectors. For example, China National Petroleum Corporation enlarged its investment in Iran’s South Pars Gas Field after several foreign energy corporations withdrew from the project.  The economic sanctions have also made it hard for Chinese corporations to repay their Iranian sellers for many purchases. Instead, the Chinese have offered to barter Chinese goods and services for Iranian energy exports, a process that, when accepted, further strengthens China’s hold over the Iranian economy.