March 19, 2026
Learn more about:
- Sanction Evasion
- Weakening Western Influence
- Human Rights Abuses
- The Role of Oil
- China’s Partnerships with Israel
- AJC’s Asia Pacific Institute
The China-Iran relationship is not a formal alliance, but two countries willing to work together toward a common goal: a loose partnership aimed at countering Western influence, particularly that of the United States and its allies.
Understanding what each country contributes to—and gains from—this relationship helps explain the dynamics behind the current conflict involving Iran, the United States, and Israel.
While the Iranian regime has long made clear its determination to destroy Israel, the broader confrontation unfolding today extends beyond the Jewish state. It is also shaped by the growing cooperation between Iran and America’s strategic competitor China, and their effort to diminish U.S. dominance.
Here is what to know about the China–Iran relationship and how it relates to the ongoing U.S.–Israel operation targeting Iran’s nuclear program.
Key Takeaways:
- Despite U.S. sanctions, China buys most of Iran’s oil output, and at discounted prices to boot. This allows Iran to sidestep sanctions and keeps the lights on in both countries.
- China and Iran share a common goal of weakening American influence.
- Despite a surge of antisemitism across its state-sanctioned online platforms, China and Israel have maintained political and economic ties.
China Helps Iran Dodge Sanctions, Make Money
Ever since the Islamic Revolution in 1979, the U.S. has imposed sanctions on Iran for various forms of malign activity – hostage taking, terrorist attacks around the world, human rights violations, and to counter nuclear and sensitive technologies. Within a month of starting his second term, Trump implemented “a robust and continual sanctions enforcement campaign … that denies the regime and its terror proxies access to revenue."
Yet, Iran has still managed to maintain its position as the world’s leading sponsor of international terrorism. And China, for its own economic interests, has been more than happy to help Iran evade sanctions and do business.
Iran has counted on China as its largest buyer of oil, at deeply discounted prices, in exchange for a promised $400 billion investment across Iran until 2046. China also buys petrochemicals, minerals, and food from Iran, which acquires machinery, vehicles, and electronics from China. In recent months, there have been reports of Iran’s planned purchases of Chinese air defense systems. These transactions bypass international financial systems in a variety of ways, skirting sanctions instead of violating them.
Denying resources to the Iranian regime with sanctions decreases its ability to finance its missile programs, international terrorism, and destabilizing regional interventions. The consequences of countering those efforts don’t hurt China. Instead, sanctions work in China’s favor.
Common Competitor: China and Iran vs. the West
Iran’s late Supreme Leader Ali Khamenei once dubbed Iran’s economic cooperation with China and others, such as Russia, a "resistance economy.” designed to defy sanctions imposed by the West.
Iran and China are engaged in military cooperation, too. In recent years, their navies, along with Russia’s, have conducted joint exercises in the Gulf of Oman and the Arabian Sea, signaling growing security coordination in a region long dominated by U.S. naval power.
China has also frequently used its diplomatic influence to shield Iran from international pressure, including opposing or weakening efforts at the United Nations to confront Tehran over its nuclear program and regional activities. While China has long maintained it does not want a nuclear Iran, non-interventionism has always been a key pillar of Chinese foreign policy.
A Common Strategy for Stability: Human Rights Abuses
The Iranian regime stops at nothing to curb political protests in order to assure its continued, repressive rule – leading to horrific human rights abuses.
In January, as massive nationwide protests swept the country, demanding a new government, Iran’s Supreme Leader, Ayatollah Ali Khamenei, gave orders to crush the protests by any means necessary and show no mercy. The regime shut down the Internet, disrupted phone service, and brutally murdered tens of thousands of innocent civilians.
During massive nationwide “Woman, Life, Freedom” protests in 2022 following the suspicious death of Mahsa Amini in police custody on charges of violating the religious dress code, Iranian security forces killed hundreds of protesters and detained and tortured many more. At least seven protesters were executed.
Previous waves of mass protests in Iran, including December 2017, November 2019, July 2021, November 2021, and May 2022, also revealed well-documented patterns of human rights violations and crimes under international law – lethal force against protesters, mass arrests and detentions, torture, and enforced disappearances.
While China does not formally take a position on the Iranian regime’s tactics, it has developed technology and surveillance infrastructure to restrict online freedom and oppress its own citizens – tools it has reportedly exported to Iran. Two Chinese technology companies have built significant portions of Iran’s telecommunications infrastructure and one company in particular has provided surveillance to the government-controlled company that runs most of Iran's landline telephone services and Iran's Internet traffic.
Is It Always About Oil?
Iran holds the world’s third-largest oil reserves (behind only Saudi Arabia and Venezuela). Meanwhile, China is the world’s largest energy importer, making the partnership a win-win: freedom to export, lower energy costs, and less energy dependence on the West.
Twelve percent of China’s oil imports come from Iran. Saudi Arabia, Iraq, the United Arab Emirates, and Russia also export oil to China. Venezuela did until the removal of Nicolas Maduro and the subsequent shift in trade routes by the U.S. Yet the relationship is far more critical for Tehran than for Beijing. Because international sanctions have severely limited Iran’s pool of buyers, roughly 90% of Iran’s oil exports now go to China, making Beijing a lifeline for the Iranian regime’s economy
In addition to exporting oil, Iran also controls much of the maritime traffic in the Strait of Hormuz, the only sea passage from the Arabian Gulf to the open ocean and one of the world's most important shipping channels. Although nearly all traffic through the Strait has been halted since early in the war, there are reports of Chinese general-cargo ships transiting the waterway.
Iran and China At Odds on Israel
Since the establishment of the Islamic Republic in 1979, Iran’s leadership has been openly committed to Israel’s destruction. China once again takes a business-first approach.
Since Israel and China established diplomatic relations in 1992, the two countries have maintained political and economic ties. In fact, China is Israel’s second-largest trading partner. Recent reports indicate that bilateral trade reached a historic high of $33 billion in 2025. Approximately 20,000 Chinese workers call Israel home.
But China, the number one trading partner of the Gulf, has increasingly positioned itself as a supporter of the Palestinian cause in international forums, as part of a broader effort to expand its influence in the region.
The Middle East sits at the crossroads of its ambitious Belt and Road Initiative, which aims to revolutionize trade throughout Asia, Europe, and Africa with transportation, digital infrastructure, and energy networks.
After the October 7 Hamas terror attack on Israel, the Chinese government failed to condemn Hamas but quickly and repeatedly condemned Israel’s response in Gaza. Despite strict government controls on the Internet, antisemitism has surged across Chinese online spaces.
How AJC’s Asia Pacific Institute Engages China
Even before the balance of economic and political power in the world began to shift toward Asia, AJC saw a need to expand Israel's and the global Jewish community's relationships with Asian countries – including China, Asia’s largest power.
For decades, AJC’s Asia Pacific Institute (API) has cultivated relationships with Chinese government, academic, and civil society leaders to deepen mutual understanding and support Israel-China relations. This has included AJC senior leadership missions to China, including a meeting with Foreign Minister Wang Yi; AJC Project Interchange delegations of Chinese thought leaders; and periodic exchanges with Chinese diplomats across the U.S.
While U.S.-China and Israel-China tensions have risen in recent years, API has maintained communication, recognizing the importance of steady diplomacy to effect real change. Even when we disagree, API has never shied from directly engaging with China on issues pertaining to antisemitism and Israel, as well as regional and global security concerns.
