China has warned the United States that it will take retaliatory measures if Washington significantly expands its new secondary sanctions targeting companies linked to Iran.
The warning came after US Treasury Secretary Scott Bessent announced new measures targeting companies in Hong Kong and mainland China, while stopping short of sanctioning major Chinese financial institutions.
China buys the vast majority of Iran’s oil exports, making Beijing a key focus of Washington’s efforts to increase economic pressure on Tehran.
A Chinese Foreign Ministry spokesperson said Beijing would take “all necessary measures” to protect its rights and interests, while reiterating its opposition to unilateral sanctions that lack authorisation from the UN Security Council.
Tensions could affect Trump-Xi meeting
A major escalation in sanctions could further strain relations between Washington and Beijing, just weeks before US President Donald Trump and Chinese President Xi Jinping are expected to meet in Washington.
The meeting is regarded as important for the global economy, with the two leaders expected to discuss the future of a temporary truce in their trade dispute.
Beijing has also developed its own counter-sanctions framework, allowing it to take action against foreign individuals and organisations that assist restrictions imposed on Chinese companies and supply chains.
China remains a major buyer of Iranian oil
While China’s large state-owned refiners generally comply with US sanctions on Iranian crude, smaller private refineries continue to import and process Iranian oil.
Washington has already imposed sanctions on some of these companies, but Beijing has instructed domestic firms not to comply with the measures.
Analysts warn that a broader US campaign targeting Chinese companies could prompt a strong response from Beijing.
China demonstrated its ability to put pressure on US manufacturing last year through its control of critical minerals used in high-tech industries.
Beijing calls for de-escalation
Chinese officials have also stressed that they do not want to become directly involved in the conflict between the US and Iran.
The continued disruption of shipping through the Strait of Hormuz is of particular concern to Beijing because China relies heavily on Middle Eastern oil supplies.
A Nanjing University international relations expert said China was interested in encouraging the parties involved in the conflict to reach a solution.
Recent diplomatic contacts by Chinese officials have included discussions on Iran and the war in Gaza, while President Xi has also held talks with Jordan’s King Abdullah II.
According to analysts, Beijing’s message to Tehran is clear: China wants negotiations and efforts towards a peaceful resolution to continue.
Also read: Trump’s sanctions begin as Tehran warns of “earthquake-like” retaliation
For more videos and updates, check out our YouTube channel
