Trump Sanctions Revive Barter Trade: China's Chery Trades Half-Built Cars for Iran's Copper

Benzinga

Chery Automobile expanded barter trade with Iran to bypass U.S. sanctions, exchanging car kits for copper and zinc instead of using dollars. The deal involves local assembly by MVM and ore distribution by Tongling Nonferrous Metals. The move comes after Trump’s recent comments on Iran relations and Chery’s $1.2 billion Hong Kong IPO.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Chinese automaker Cherry Automobile has increased barter trade with Iran amid U.S. sanctions

00:07imposed by President Trump after he exited the Iran nuclear deal in 2018, that according to

00:12Bloomberg. The arrangement allows Cherry, China's largest vehicle exporter, to exchange semi-knockdown

00:17vehicles for Iranian copper and zinc through intermediaries instead of using U.S. dollars.

00:22This structure avoids violating sanctions since transactions don't involve U.S. or European

00:26currencies. Cherry's partner, MVM, assembles the vehicles locally, while Iran's Tongling

00:32non-ferrous metals group distributes the oars in China. News files Trump's recent diplomatic

00:36remarks on improving ties with Tehran and Cherry's $1.2 billion IPO in Hong Kong, who saw shares

00:42jump 11% to HK$3.4.16.

00:47For all things money, visit Benzinga.com.

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