China warns it will safeguard its interests after US widens sanctions against Iran
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China has hardened its rhetoric after the United States widened economic sanctions on Iran, with foreign ministry spokesman Lin Jian saying Beijing was "firmly opposed" to what it called "illegal unilateral sanctions" and would take "all necessary measures" to safeguard its rights. The exchange followed US Treasury Secretary Scott Bessent's announcement of sweeping new measures, dubbed "Operation Economic Outcast", which he described as the "single greatest financial offensive ever" against Iran, warning that any bank or business continuing to deal with Tehran would be isolated. The row adds friction to US-China relations weeks before planned talks between Donald Trump and Xi Jinping, given China's role as Iran's largest oil customer and its dominance of global rare earth supplies.
Bessent said the Treasury had mapped the financial networks Iran uses to evade sanctions, adding almost 60 entities, individuals and vessels to the sanctions list, and made clear "no one was above the reach of US sanctions" when asked about Chinese banks. Iran's economy minister, Ali Madanizadeh, said Tehran was "fully prepared" and had a two-year contingency plan, predicting "another defeat" for Washington, while the UK's chancellor voiced support for the pressure campaign. Analysts were sceptical of its impact, however, with Capital Economics' David Oxley calling the likely effect on Iran's energy revenues "somewhat of a damp squib", noting roughly 90% of Iran's oil already goes to China, which does not recognise the sanctions.
- China vows to protect its interests against new US sanctions targeting Iran trade.
- US calls measures "Operation Economic Outcast", an "economic D-Day" for Iran.
- Analysts doubt sanctions will significantly cut Iran's oil revenue from China.
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China does most of its Iran business through oil purchases: Beijing buys the vast majority of Iran's exported crude, giving it a direct financial stake whenever Washington tightens sanctions on Tehran. The United States has repeatedly used sanctions as its main tool for pressuring Iran over its nuclear programme and regional activities, and it has also shown a willingness to target foreign companies and banks that keep trading with Iran, which is what puts Chinese firms in the firing line.
The dispute sits on top of an already strained relationship between the US and China, the world's two largest economies, which frequently clash over trade, technology and security issues even as they try to keep communication channels open. The US Treasury is the government department responsible for drawing up and enforcing sanctions, while China's foreign ministry speaks for the government on matters of international diplomacy.
The timing adds another layer of significance, since the two countries' leaders, Donald Trump and Xi Jinping, are due to hold talks in the coming weeks. Tensions over sanctions could complicate that meeting, though some economists note that similar past disputes have not necessarily led to major disruption in trade between the two countries.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of Washington's approach argue that Iran's nuclear ambitions, missile programme and support for regional proxies pose a genuine security threat, and that sanctions are among the few non-military tools available to constrain the funding behind them. They contend that loopholes exploited through third-country intermediaries have long blunted previous sanctions regimes, so closing off financial networks – even where they run through major economies such as China – is a necessary and proportionate response rather than an act of aggression. On this view, firm enforcement, including against banks and firms that facilitate evasion, is what gives sanctions any deterrent value at all.
The case against
Critics, echoing Beijing's position, argue that sanctions imposed unilaterally by one country and then applied to the trade of others amount to an overreach of national law beyond its proper jurisdiction, since only measures agreed multilaterally through bodies such as the UN Security Council carry genuine international legitimacy. They contend that such secondary sanctions coerce sovereign states into complying with another nation's foreign policy under threat of being cut off from the financial system, undermining fair commerce and disproportionately burdening ordinary trade and energy relationships rather than the intended target. From this perspective, China's insistence on defending its own economic interests reflects a principled defence of sovereignty and lawful international exchange, not merely self-interest.