US Warns of Sanctions Against Iran’s Trading Partners; China Says It Will Defend Its Interests

Washington has stepped up pressure on countries that continue to trade with Iran, while the implementation of this new US approach is expected to depend heavily on China’s response.

US Treasury Secretary Scott Bessent announced the launch of “Operation Economic Outcast,” a campaign aimed at economically harming countries that refuse to end trade cooperation with Tehran. In his statement, Bessent did not directly mention China, even though Beijing ranks among Iran’s leading economic partners.

For years, China has played an important role in supporting Tehran’s economy. It buys most of Iran’s oil exports, worth tens of billions of dollars a year, while also maintaining other trade ties with Iran.

Beijing strongly opposes the US punitive measures, which it describes as “unilateral” sanctions, and insists that it has the right to conduct normal trade with countries such as Iran and Russia.

Following Bessent’s announcement, China’s Foreign Ministry said the country would use “all necessary measures” to protect its legitimate rights and interests.

Ministry spokesperson Lin Jian said that “economic warfare and maximum pressure” offer no solution to the conflict. According to him, these policies could increase tensions and damage the global economic and financial system.

A significant share of Iranian oil is shipped to China through an informal trade network created to circumvent the US financial system and sanctions.

Small private Chinese refineries, known as “teapot refineries,” process Iranian oil subject to US sanctions. A network of ports, financial companies and ships with limited exposure to the international system is used for this purpose.

However, analysts say Washington still has tools at its disposal to exert pressure. One option would be to sanction Chinese companies with ties to state-owned enterprises, thereby placing indirect pressure on them.

Bessent has previously said that the US warned two Chinese banks over their involvement in transactions linked to Iran. He also stressed that “no one is above” US sanctions.

The dispute is unfolding at a sensitive time for US-China relations. Chinese President Xi Jinping is expected to travel to the US next month, where he will meet President Donald Trump. The meeting could be highly significant for the future of the trade truce between the two countries.

Experts warn that sweeping measures against major Chinese banks could trigger a strong response from Beijing and significantly worsen the political climate ahead of the summit.

According to analysts, such an escalation would change the nature of the Trump-Xi meeting: from an effort to stabilize relations, it could turn into talks focused on limiting the damage and consequences of the economic confrontation.

Although China opposes the US sanctions policy, Beijing may take cautious steps to ease tensions. Possible options include reducing purchases of Iranian oil and increasing diplomatic pressure on Tehran to show restraint.

China’s oil purchases from Iran have already fallen significantly compared with last year, while the US blockade has restricted Tehran’s exports.

Beijing has also called for the restoration of normal traffic through the Strait of Hormuz, a vital corridor for global energy trade.

However, China does not appear ready to assume the role of a direct mediator in the conflict. Its aim is to protect its economic interests while maintaining its image as a power that supports stability and peace in the region.

Beijing’s message to Washington remains clear: China can help bring the crisis to an end, but it will not agree to become part of the US strategy of “maximum pressure” against Iran.