China banks cut Iran business

TEHRAN: Chinese banks have cut back business with Iranian banks due to US pressure over Tehran's nuclear programme, an Iranian Foreign Ministry official said.
The US has urged international banks and companies to stop dealing with or investing in Iran.
Many Western banks have either halted transactions with Iranian customers or reduced business with them sharply.
But China has expanded commercial ties with Iran in recent years and has been reluctant to impose tough economic sanctions on Tehran.
"Because of America's pressure, China's banking system has cut its co-operation with Iranian banks for four months now," Deputy Foreign Minister Mahdi Miraboutalebi said.
Asadollah Asgaroladi, the head of the Iran-China chamber of commerce, said in early December that Iranian traders had faced difficulties in opening letters of credit with Chinese banks, restricting a vital instrument in trade.
China has become an increasingly important trading partner with Iran as expanding UN and U.S. sanctions over the nuclear activities have encouraged Western businesses to scale back dealings with the Islamic Republic.
In 2007, Iran was China's third-largest supplier of crude oil, with volumes rising by 22.4 per cent from the previous year.