Beijing has threatened retaliation against the United States over President Donald Trump's latest sanctions targeting Iran, warning that China will defend its interests if its trading partners are affected. The new U.S. Treasury sanctions, announced Monday by Secretary Scott Bessent, aim to pressure countries still trading with Iran by threatening to cut them off from the dollar-based financial system.
China is a significant buyer of Iranian oil, a trade that has been a critical financial support for Iran. The latest U.S. measures promise what are described as the "toughest sanctions in history" against 60 individuals, entities, and vessels, with some located in Hong Kong and mainland China. However, specific Chinese financial institutions were not named.
"China will do everything necessary to firmly safeguard its rights and interests," stated Lin Jian, spokesperson for China's Foreign Ministry. He reiterated China's opposition to unilateral sanctions lacking a basis in international law or U.N. Security Council authorization. "Economic warfare and maximum pressure provide no solution," Lin Jian added, asserting that such actions fuel tensions and disrupt the global economic order.
Experts suggest that Washington may be cautious about China's potential reaction to these sanctions, particularly if they affect China's exports of critical minerals. Last year, China demonstrated its leverage by limiting rare earth mineral exports, impacting American manufacturing and highlighting U.S. dependence on these resources essential for high-tech production and military applications. During a previous trade dispute, China required government approval for companies exporting these minerals.
U.S. Treasury Secretary Bessent has characterized such actions as "economic coercion" and a "global supply chain power grab." While China's state-owned refiners have largely complied with existing Iran sanctions, private companies, known as "teapots," have been permitted to purchase and process Iranian oil. The U.S. has previously attempted to sanction these private entities, but the Chinese government reportedly instructed them to disregard the measures.
Despite Bessent urging cooperation, U.S. blockades of Iranian ports, renewed in mid-July, have already reduced Iranian oil shipments to China. "No one is above the reach of U.S. sanctions," Bessent stated regarding China's trade with Tehran, emphasizing that global leaders must now choose between the U.S. and Iran.
While Bessent did not specify which countries would be targeted or when the penalties would take effect, Iran has expressed confidence that major trading partners will resist U.S. pressure. Iranian Economy Minister Ali Madanizadeh claimed that China and Russia have not accepted the U.S. measures, predicting broader international resistance. Iran has also signaled its readiness to retaliate, with Madanizadeh stating, "We are fully prepared for the U.S. sanctions."
The escalating tensions come weeks before a scheduled meeting between President Trump and Chinese President Xi Jinping in Washington, where discussions on their trade war truce are anticipated.