TEHRAN- The snapback of pre-JCPOA UN sanctions against Iran have created a complex and delicate balancing act for China.

As one of Iran’s key diplomatic and economic partners, Beijing has sought to navigate these restrictions with a pragmatic approach – recognizing Iran’s geopolitical importance and vast energy resources while adhering to UN mandates. China's strategy has been to maintain its relationship with Iran without directly violating the UN norms and laws.

China regards itself as responsible for upholding international order and security. When engaging in confrontive dialogue with the West, the Chinese approach these discussions from a distinct perspective, according to Secretary-General of Iran-China Strategic Studies Institute, Farshad Adel.

“They tell the West that it has lost faith in international mechanisms, rendering them ineffective.......Mr. West, you have undermined international mechanisms,” he explained.

China asserts that its role is to reinforce the authority of international organizations and to define processes within that framework, Adel added. This is one of the core elements of China’s Global Governance Initiative, introduced on September 1st.”

This careful diplomacy has often meant that Beijing has resorted to creative solutions, structuring deals through third countries, using off-the-book financial mechanisms, or engaging in non-dollar trade.

One of the key tactics China has employed to mitigate the effects of sanctions is the use of alternative financial systems. By engaging in local currency trade or even barter, China has been able to maintain commercial ties with Iran while avoiding the traditional international financial networks that are off-limits to Tehran.

The limitations on Iran’s access to Western financial systems mean that China faces additional costs and complexities in conducting business. Also, the country is wary of incurring secondary sanctions from the U.S. or other Western powers, which would carry significant risks, particularly if Beijing were to deepen its involvement in sensitive sectors like military or defense.

However, should the sanctions on Iran be reduced or lifted, several sectors stand to benefit from increased cooperation between China and Iran. The Belt and Road Initiative (BRI) could see expanded cooperation, with China potentially ramping up its involvement in Iran’s infrastructure development, particularly in areas like railways, ports, and logistics hubs as well as oil and Gas industries.

Rather than direct military cooperation and support, Beijing has favored diplomatic solutions and nonconfrontational strategies, understanding that any significant military engagement with Iran could provoke serious repercussions from the West. China is refraining from any actions that might risk violating UN norms or escalate tensions with its key economic and security partners, such as the U.S. and European Union.

However, diplomatically, China has been one of Iran’s most consistent supporters, particularly within international forums like the United Nations Security Council. This support is rooted in a desire to maintain Iran's sovereignty and to balance its own strategic objectives.

China is also cautious about its broader diplomatic and economic interests, particularly key regional actors like Saudi Arabia and the United Arab Emirates. As such, while China supports Iran’s peaceful nuclear program and right to self-defense, it carefully avoids actions that might escalate tensions with its other partners in the region.

“China is actively working to present a new image and brand for itself. This is why Americans often associate China with the symbol of the dragon, while the Chinese prefer to represent themselves with the symbol of the panda. They aim to project a softer, lovelier image,” Adel stated.

China’s relations with the U.S. and the Persian Gulf states are crucial factors that influence its security cooperation with Iran. While Beijing values its partnership with Tehran, it is acutely aware of the need to maintain stable ties with Washington and other key West Asian states. The country has adopted a careful diplomatic posture, supporting Iran in the international arena while avoiding direct military or security engagements that could harm its relationships with the U.S. or Persian Gulf allies.

In this regard, China’s position is one of balancing competing interests—supporting Iran’s sovereignty and security needs while safeguarding its broader geopolitical and economic goals. Given the ongoing sanctions and the potential for further international pressure, China is unlikely to significantly expand its defense or security cooperation with Iran. Any move in this direction could provoke strong reactions from the U.S. and its allies, resulting in increased pressure on China.

However, China is likely to continue engaging in limited security cooperation with Iran, such as intelligence-sharing, counterterrorism efforts, or non-sensitive arms sales, as these actions carry fewer risks of triggering severe Western backlash. Cooperation in more sensitive areas, like advanced defense technologies, will likely remain off-limits due to the continued sanctions.

Looking ahead, as global power dynamics shift and the world transitions toward a more multi-polar order, China is likely to adopt a more assertive and flexible approach to West Asia. China’s position as a neutral broker in regional conflicts could enhance its role as a key player in Middle Eastern geopolitics.