China has issued a stern warning to the United States, vowing to retaliate with “all necessary measures” if any of its companies are affected by new U.S. secondary sanctions targeting Iran.
The warning comes after U.S. Treasury Secretary Scott Bessent announced "Operation Economic Outcast" on Monday, a move intended to further isolate Iran.
While the U.S. has not yet listed major Chinese financial institutions, Beijing, which is Iran's largest oil buyer, has declared its intent to protect its economic interests. Chinese Foreign Ministry spokesman Lin Jian stated on Tuesday that "China has made clear on many occasions its firm opposition to illicit unilateral sanctions that have no basis in international law or the authorization of the UN Security Council."
China is Iran's biggest trading partner. Although its state-owned refiners generally adhere to Western sanctions on Tehran's crude oil, Beijing permits its private sector to engage in business with Iran.
"Cooperation between China and Iran has always been conducted within the framework of international law and should not be interfered with or disrupted," Lin added, emphasizing that China's business dealings with Iran would continue without interruption. He also called for an end to the conflict and the reopening of the Strait of Hormuz.
U.S. Treasury Secretary Bessent defended the expanded sanctions as a significant financial offensive designed to lead to the collapse of the Iranian regime. When questioned about the potential impact on Chinese banks, Bessent asserted that "no one is above the reach of U.S. sanctions."
This opposition from Beijing could complicate U.S.-China relations ahead of an anticipated summit between President Trump and Chinese President Xi Jinping next month.
Meanwhile, Iran has also warned of retaliatory attacks against U.S. economic targets and its partners globally, particularly in the region, should America's economic pressure escalate. Majidreza Hariri, head of the Iran-China Chamber of Commerce and Industries, wrote on X that "All of America’s economic targets and its partners around the world, and especially in the region, are considered military targets of the enemy and are targetable!"