China has warned it will "safeguard its interests" after the US announced plans to widen economic sanctions targeting Iran and countries trading with it, including Beijing. The move, described by US Treasury Secretary Scott Bessent as the "single greatest financial offensive ever" against Iran, threatens to isolate banks and businesses that continue financial dealings with Tehran, escalating tensions between Washington and Beijing ahead of planned talks between Donald Trump and Xi Jinping.

China's foreign ministry called the sanctions "illegal unilateral" measures and pledged "all necessary measures" to protect its rights, noting its dealings with Iran comply with international law. China remains the largest buyer of Iranian oil, though trade has fallen under the US blockade of the Strait of Hormuz, and Beijing holds significant leverage through its control of most global rare earth processing. Separately, Iran's Economy Minister Ali Madanizadeh said Tehran was "fully prepared" for the tougher sanctions, citing a two-year contingency plan.