Beijing has threatened retaliation against the US because of the president Donald Trump‘s latest sanctions Iran that would have consequences for its trading partners.
On Monday, US Treasury Secretary Scott Bessent announced the tough measures, warning countries still trading with Iran were at risk of being forced out of the dollar-based financial system.
China currently buys about 90 percent of Iran’s oil, a crucial financial lifeline keeping the Islamic Republic afloat, with previous U.S. sanctions squeezing its companies’ access to U.S. economic markets.
The latest US sanctions promised ‘the toughest sanctions in history’ against 60 individuals, entities and ships, including those based in Hong-Kong and mainland China, but failed to specify Chinese financial institutions.
“China will do whatever it takes to firmly protect its rights and interests,” Chinese Foreign Ministry spokesman Lin Jian warned in response to the economic “D-Day” promised by US sanctions.
“China has made clear on many occasions that it strongly opposes illegal unilateral sanctions that have no basis in international law or the approval of the UN Security Council,” he said.
‘Economic warfare and maximum pressure are not the solution. On the contrary, they only serve to fuel tensions and lead to spillover effects that will disrupt the global economic and financial order and harm the legitimate rights and interests of other countries.
“The urgent task is to facilitate the de-escalation of the situation and return to dialogue and negotiation as quickly as possible.”
President Donald Trump and Chinese President Xi Jinping at a state dinner at the Great Hall of the People in Beijing (May 2026)
Experts claimed yesterday that Washington would be wary of how China would respond to the sanctions, meaning any restrictions on Chinese exports of crucial minerals would be particularly sensitive.
Last year, Beijing showed how dependent the US was on these resources essential to high-tech production, such as electric cars, electronics and military weapons, by restricting their exports and halting US production.
As part of a trade war between Trump and Chinese President Xi Jinping, China forced companies to get government approval before shipping the rare minerals abroad.
Bessent called the move “economic coercion” and a “global supply chain power grab” as China has a global monopoly on rare earth mining, with analysts claiming this was China’s way of demonstrating their bargaining power.
Experts have warned that China could respond similarly if the US were to impose the latest sanctions.
China’s state-owned refineries are largely in compliance with current sanctions on Iran, but private companies known as “teapots” are allowed to buy and process Iranian oil.
Earlier this year, the US tried to sanction these private companies, although Xi’s government ordered them to ignore the measures.
Bessent previously urged China’s cooperation, although the US blockade of Iranian ports, renewed in mid-July, has already reduced Iranian oil flows to China.
“No one is beyond the reach of US sanctions,” Bessent said when asked about China’s trade ties with Tehran. “Now is the time for world leaders to make a decision between America and Iran.”
While Bessent declined to identify the countries that would be targeted or reveal when the sanctions would take effect, Tehran expressed confidence that its major trading partners would resist Washington’s pressure campaign.
Iran’s Economy Minister Ali Madanizadeh claimed yesterday that neither China nor Russia had “accepted” the US measures, predicting that other countries would also oppose them.
Iran has also promised retaliation for the sanctions, with Madanizadeh adding: “We are fully prepared for the US sanctions.”
He told state television: “Of course the enemies plan to launch an economic terrorist attack on us, but we also have our own instruments and know how to play the game. Our defense is no longer so defensive; the enemies must wait for an attack.’
Xi met with Jordan’s King Abdullah II in recent days, where they are believed to have discussed Iran and the war in Gaza, while Chinese Foreign Minister Wang Yi held similar talks with his Kuwaiti counterpart.
Beijing’s threats of retaliation come just weeks before Trump and Xi are due to meet in Washington, where they are expected to discuss extending their trade war truce agreed in October.
