China Warns of Retaliation If US Expands Iran Sanctions to Chinese Firms
Beijing has warned Washington of retaliation if new US secondary sanctions targeting Iran are expanded to include Chinese companies. The warning comes just a month before a crucial summit between Presidents Donald Trump and Xi Jinping in Washington. While China's state-owned refiners mostly comply with sanctions, private refiners continue importing Iranian crude under Beijing's protection.
According to a report by the Financial Times, Beijing has warned Washington that it will retaliate if Chinese firms are targeted in any major expansion of the Trump administration's new secondary sanctions related to Iran.
The measures, announced Monday by U.S. Treasury Secretary Scott Bessent, targeted entities in Hong Kong and mainland China but avoided major Chinese financial institutions. Any broader sanctions could seriously strain U.S.-China relations, particularly as China buys about 90% of Iran’s oil and Presidents Donald Trump and Xi Jinping are expected to meet in Washington next month. The summit is seen as crucial to extending the trade-war truce reached last October.
China has vowed to defend its interests and opposes unilateral U.S. sanctions on Iran. While state-owned refiners generally follow sanctions, smaller “teapot” refiners continue processing Iranian oil, with Beijing previously instructing domestic firms to disregard U.S. restrictions.
China has also strengthened its anti-sanctions framework, allowing retaliation against foreign entities involved in sanctions on Chinese companies and supply chains. A major U.S. push for secondary sanctions could therefore trigger a swift Chinese response, potentially including export controls on critical minerals, as Beijing demonstrated last year.
Wang Dong, a senior scholar at Peking University, said it remains unclear whether the U.S. is serious about imposing secondary sanctions on China, but warned that Beijing would defend its national interests if it did. He argued that Washington was attempting to shift blame for its own failures onto China.
Meanwhile, Nanjing University international relations specialist Zhu Feng said Beijing is strongly motivated to encourage a resolution to the U.S.-Iran conflict. He warned that continued disruption of shipping through the Strait of Hormuz could severely hurt the global economy and pose risks to China, which relies heavily on Middle Eastern oil imports from countries such as Saudi Arabia and Iraq.
Recent discussions between Chinese and Middle Eastern officials, including Xi Jinping’s meeting with Jordan’s King Abdullah II and Foreign Minister Wang Yi’s talks with his Kuwaiti counterpart, have centered on Iran and the Gaza conflict. Zhu said Beijing’s message to Tehran remains clear: China wants peace negotiations to continue.