China has been paying for Iranian oil using a barter-like system in which oil purchases are repaid through Chinese state-backed construction in Iran rather than bank transfers, according to current and former Western officials. An Iranian-controlled seller affiliated with Naftiran Intertrade Company (NICO) books crude sales to a Chinese buyer affiliated with sanctioned state-owned trader Zhuhai Zhenrong. The buyer deposits funds with a secretive financial mechanism referred to as Chuxin. Chuxin disburses money to Chinese contractors building Iranian infrastructure that is insured by state export-credit agency Sinosure (formerly China Export & Credit Insurance). According to some of the officials, up to USD $8.4 billion flowed through the conduit in 2024.