(Persia Digest) – With a probable cut in ties between China's Kunlun Bank and Iranian businessmen looming, Beijing is preparing to set up a new banking system for continued financial and banking ties with Tehran.

Reliable sources in Beijing told IRNA that this replacement system will become operational soon and experts from both countries have already conducted a number of meetings to discuss the details.

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The said sources pointed out that the Kunlun Bank is under pressure by the US to cut ties with Iran from 1st November 2018 and underlined that the new system is trying to begin work from this date, but delays are probable.

At a meeting with Iranian and Chinese authorities, the Iranian Chamber of Commerce in China also called for details of the new system to be announced to them, eliminating the existing hurdles with Kunlun Bank.

The setup of new structures by China may take longer and the launch of the new system may be delayed until 2019.

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Persia Digest (PD) has reported that China is trying to set up new banking channels to work with Iran following the announcement of an SPV by the EU. This will neutralize the US banking sanctions imposed on Iran to a large extent, coming into effect from 4 November following the unilateral US withdrawal from the 2015 JCPOA Iran nuclear deal in May this year.

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