China threatened the US with a response over new sanctions for trade with Iran
China has stated that it will take all necessary measures to protect its interests in response to a new US campaign to economically isolate Iran. Washington is expanding the risk of secondary sanctions for companies and countries that continue to do business with Tehran, which directly affects Beijing - the largest buyer of Iranian oil.
Chinese Foreign Ministry spokesman Lin Jian stated on August 25 that Beijing opposes unilateral sanctions that have no basis in international law and are not approved by the UN Security Council.
According to him, economic war and the policy of maximum pressure will not help resolve the conflict, but will only intensify confrontation, create additional risks for other countries, and disrupt the global economic and financial system.
"China will take all necessary measures to firmly protect its rights and interests", - stated the Foreign Ministry representative.
In response to a separate question about Chinese companies subject to new US restrictions, Lin Jian emphasized that cooperation between China and Iran is carried out within the framework of international law and should not be interfered with.
US launches economic isolation of Iran
Beijing's statement came in response to the economic isolation operation Economic Outcast announced by the Donald Trump administration, whose goal Washington calls cutting off practically all external sources of income for Iran.
US Treasury Secretary Scott Bessent stated that Washington is transitioning to a policy of "zero leakage" and will try to cut off Tehran's economic ties with the outside world.
The new American measures expand the possibility of applying secondary sanctions to companies and financial institutions that continue to cooperate with Iran. Separately, the US has targeted five areas it considers key to the Iranian economy and to circumventing restrictions: digital assets, technologies, gold, aviation, and maritime transport.
Washington also warned that entities helping Iran move money could be cut off from the American dollar financial system.
At the same time, the American administration effectively presented other countries with a choice between economic interaction with Iran and the risk of US restrictions.
China is a key buyer of Iranian oil
Beijing's position may become the main problem for the American strategy. According to estimates cited by the Financial Times, China buys about 90% of the oil that Iran supplies to foreign markets.
A significant part of these supplies goes to independent Chinese oil refineries. Large state-owned PRC companies are more cautious about sanctions risks, but small private refineries continue to be important buyers of Iranian raw materials.
The current US restrictions already affect a number of entities in mainland China and Hong Kong. At the same time, Washington is still refraining from large-scale sanctions against major Chinese banks and other systemically important companies.
Further expansion of sanctions against large Chinese financial institutions or energy companies could significantly raise the stakes in relations between the two largest economies in the world.
New risk before the Trump-Xi meeting
The conflict over Iranian oil arose at a sensitive moment for Washington and Beijing - a few weeks before a planned meeting between Donald Trump and Chinese leader Xi Jinping.
The US is trying to persuade China to join the economic pressure on Tehran. Bessent previously explicitly called on Beijing to support the American campaign, but the Chinese authorities rejected this approach and called for a return to diplomatic negotiations.
Therefore, Washington's attempt to force Chinese companies to give up Iranian oil could turn from a matter of sanctions against Tehran into a new source of trade and financial confrontation between the US and China.
Based on materials from: Chinese Foreign Ministry, White House, Financial Times
