China has condemned the US threat to impose sanctions over its trade with Iran, calling any such measures illegal and warning that it would take “all necessary measures” to defend its national interests.
Beijing’s rejection of the US threat of secondary sanctions—aimed at any country or entity that continues to trade with Tehran—had been widely expected. China buys an estimated 80% of Iran’s oil exports and has previously ignored US efforts to cut off revenue to the Iranian regime.
Its statement of opposition raises the question of how far the Trump administration would go in confronting China and its financial system in its push to isolate Iran.
On Monday, US Treasury Secretary Scott Bessent made the sanctions threat and announced an initial round of sanctions on 60 individuals, entities, and ships allegedly involved in trade with Iran. However, no Chinese financial institutions were included, even though they help finance Iran’s oil trade. That omission reflected US caution.
China is the largest buyer of Iran’s oil. Could US sanctions threaten that relationship?
Asked why the Trump administration had not imposed immediate sanctions or named potential targets, Bessent replied: “Why would I want to blow up the global financial system?”
Financial and trade experts say the administration is well aware of the risk of Chinese retaliation ahead of a planned summit next month between Donald Trump and Xi Jinping. China could respond through financial markets or by restricting exports of critical minerals.
Lin Jian, a spokesperson for China’s foreign ministry, told reporters on Tuesday: “Cooperation between China and Iran has always been conducted within the framework of international law and should not be interfered with or disrupted.
“China has already stated many times that it firmly opposes illegal unilateral sanctions. China will take all necessary measures to firmly safeguard its own rights and interests.”
Iran has been economically devastated by the war and the accompanying US blockade, but it remained defiant in response to Bessent’s threats of total isolation.
Economy Minister Ali Madanizadeh said on state television: “Our defence is no longer so defensive; the enemies should wait for an attack.”
An oil tanker was reportedly hit on Tuesday by an unidentified projectile at the mouth of the Strait of Hormuz. Only two commercial vessels were reported to have successfully passed through the narrow waterway on Monday.
The launch of what Bessent called “Operation Economic Outcast” suggests that a resolution to the conflict with Iran is still far off. It also points to a shift toward economic measures and away from military force, after a six-month war that has not brought about the intended Iranian capitulation.
The near-closure of the Strait of Hormuz and its knock-on effect on oil prices and the global economy is a political risk for Trump as congressional elections approach in November.
US Defense Secretary Pete Hegseth insisted that further military action was still possible. “By no means are we foreclosing using kinetic strikes anywhere in the Strait of Hormuz or around Iran,” Hegseth told reporters on Monday.
Bessent called the sanctions campaign unprecedented and compared it to the D-day Normandy landings, a turning point in the second world war.
“Today, in that same spirit, we are launching an economic onslaught against Iran’s financial connections around the globe,” he said. “Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone.”
He said the US had identified those that continued to deal with Iran, and each violator would be given a deadline to cut ties or face US sanctions. He added that the deadlines would depend on individual circumstances.
“Any entity that faciHe said, “Those who facilitate money laundering for Iran will be cut off from the US dollar system. The clock has just started ticking.”
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Bessent said Trump was “making phone calls to world leaders with specific requests to stop their dealings with the regime,” but he didn’t clarify whether the US president would speak with his Chinese counterpart.
Sina Toossi, a senior non-resident fellow at the Center for International Policy, said: “After nearly six months without a military or diplomatic win, Washington seems to be trying to achieve through tighter economic pressure what military force hasn’t managed so far. But Tehran is responding to that all-or-nothing approach with one of its own.”
Seemingly anticipating the US measures, the United Arab Emirates, a close ally of both the US and Israel, announced it was suspending trade ties with Iran. Turkey, another trading partner with Iran that has criticized the US-led campaign against the Islamic Republic, has yet to respond to the US threat of sanctions.
Andrew Miller, a senior fellow at the Center for American Progress, said: “The announcement of new economic sanctions on Iran and the countries trading with it highlights what’s obvious to everyone: this war hasn’t brought the United States any closer to ending Iran’s nuclear program or weakening the Iranian regime. While sanctions can work, it’s very unlikely they’ll lead to a quick deal that favors the United States.”
Frequently Asked Questions
Here is a list of FAQs regarding Chinas condemnation of US threats to impose sanctions over its trade with Iran
BeginnerLevel Questions
1 What is happening between China and the US right now
The US has threatened to sanction China for buying oil from Iran China has responded by publicly condemning this threat saying it is unfair and against international rules
2 Why is China buying oil from Iran if the US says its illegal
China says its trade with Iran is legal and normal Since the US sanctions on Iran are not recognized by the United Nations China argues it has no obligation to follow them China needs the oil for its economy and buys it at a discounted price
3 What does sanctions mean in this context
Sanctions are penalties like banning trade or freezing assets that one country puts on another to force them to change their behavior Here the US is threatening to punish Chinese companies that do business with Iran
4 Why does China care so much about this
China cares because it is the worlds largest oil importer and Iran is a major supplier If China stops buying from Iran it could lose a cheap energy source and set a bad precedent where the US controls who China can trade with
5 Is China threatening to go to war over this
No there is no talk of war This is a diplomatic and economic dispute Chinas response is verbal and likely involves behindthescenes negotiations to protect its interests
IntermediateLevel Questions
6 What exactly did China say in its condemnation
Chinas Foreign Ministry said the US threats are baseless and hegemonic They stated that ChinaIran trade is lawful and they urged the US to stop bullying other countries and to respect international law instead of using domestic laws to control the world
7 Does China have a legal right to ignore US sanctions
Yes generally US sanctions are domestic laws meaning they only apply to US citizens and companies International law only requires countries to follow sanctions imposed by the UN Security Council Since the UN has not sanctioned Iran China argues its trade is legal
