At a press conference on Tuesday, Chinese Foreign Ministry spokesperson Lin Jian announced that China will not comply with the U.S. Treasury Department’s latest demand to sever all economic connections with Iran. Lin framed the decision as a matter of international law and stability, rejecting what he called U.S. “economic warfare” aimed at pressuring Tehran.
U.S. Treasury expands secondary sanctions
The Treasury Department unveiled a sweeping expansion of secondary sanctions on Monday, targeting more than 60 entities linked to Iran and ordering Bank Melli Iran to shut down. Treasury Secretary Scott Bessent warned that any country continuing to do business with Iran could face severe consequences, including exclusion from the U.S. dollar system. Bessent offered little detail on the specific actions the United States would take against violators, stating, “We are giving everyone the opportunity to remedy bad behavior. Why would I want to blow up the global financial system?”
China’s economic relationship with Iran
China remains a critical conduit for Iranian trade. Beijing purchases roughly 90% of Iran’s crude oil and provides Iranian banks access to its own banking network, helping Tehran mitigate the impact of Western sanctions. While the Treasury’s new rules named more than 60 entities, Chinese state banks were largely exempt.
Potential global impact
Analysts note that if U.S. sanctions were to target Chinese banks heavily, the move could threaten the dollar’s central role in global trade. Such a disruption might weaken the effectiveness of Western sanctions overall, a concern echoed by Lin, who said the sanctions would “fuel tensions and lead to risk spillover, disrupting the global economic and financial order and harming the legitimate rights and interests of other countries.”
China’s stance on international law
Lin emphasized that China’s cooperation with Iran is conducted within the framework of international law and should not be disrupted. He added that Beijing is closely monitoring developments and will take all necessary steps to protect its rights and interests.
U.S. response
While Bessent’s remarks suggested a willingness to enforce the new sanctions, the Treasury has not yet outlined concrete enforcement mechanisms. The lack of detail leaves the international community watching closely to see whether the United States will extend pressure to Chinese financial institutions or focus solely on non‑Chinese entities.
What this means for the region
The standoff highlights the broader strategic competition between the United States and China over influence in the Middle East. For Iran, continued access to Chinese markets and financing offers a lifeline amid tightening Western pressure. For the United States, the challenge remains how to enforce its sanctions without provoking a broader financial backlash that could destabilize global markets.
Original reporting: WMAL (Washington DC) — read the source article.
