China says will safeguard interests as US expands Iran sanctions
China has said it will take all necessary measures to protect its interests after the United States announced plans to widen economic sanctions against Iran and its trading partners, including China.
Foreign ministry spokesman Lin Jian stated that Beijing firmly opposes what it calls "illegal unilateral sanctions" and will adopt all necessary measures to safeguard its rights and interests. His remarks came in response to the latest US move announced by Treasury Secretary Scott Bessent on Monday.
Bessent unveiled the new measures, warning that any nation financially partnering with Iran would face isolation. He described the sanctions as "the single greatest financial offensive ever" against Iran, and cautioned banks and businesses that they would share in Iran's isolation if they refused to cut ties with the country.
China is the largest buyer of Iranian oil, although trade volumes have declined under the US blockade of Iran's ports. Lin emphasised that cooperation between China and Iran has always been conducted within the framework of international law and should not be interfered with or disrupted.
The US Treasury Secretary declined to single out specific nations, but said President Donald Trump would be phoning world leaders with specific requests to cease their interactions with the Iranian regime. When asked about Chinese banks, Bessent made clear that "no one was above the reach of US sanctions."
The announcement comes ahead of planned talks between Trump and Chinese President Xi Jinping next month. Washington is likely to be wary of potential retaliation from Beijing, which processes the majority of the world's rare earths and other critical minerals essential for high-tech manufacturing. Beijing has already tightened export controls on rare earths in previous trade negotiations with the US.
Iran's Economy Minister Ali Madanizadeh responded by saying Tehran was "fully prepared" for the wider sanctions, which he predicted would lead to "another defeat" for the US. "The government is and was ready and has a two-year plan to manage these events," he told state television. "We also have our own tools and know how to play the game," he added, noting that Tehran had been waiting for these plans for a long time.
The latest sanctions represent an escalation of Washington's maximum pressure campaign against Tehran, which has been in place since the US withdrew from the 2015 nuclear accord in 2018. The strategy aims to cut Iran's oil exports and isolate its economy. China, as a major importer of Iranian crude, has frequently faced US pressure to reduce its purchases.
Analysts note that the timing of the announcement, just before the Trump-Xi meeting, could be a bargaining chip in broader trade negotiations. The US may seek concessions from China on Iran while Beijing could leverage its dominance in rare earths and critical minerals as countermeasures.
China's rare earth exports are crucial for the production of electronics, defence systems, and renewable energy technologies. A disruption in supply could have significant consequences for global supply chains. Beijing has shown willingness to use this leverage in trade disputes.
Both China and Iran have maintained that their bilateral ties are based on mutual respect and international law. Iran has also downplayed the impact of the US sanctions, insisting it has strategies to mitigate economic pressures.
The US measures have drawn mixed reactions internationally. Some European countries have historically opposed extra-territorial sanctions, while others have cooperated with US enforcement. The expansion of sanctions targeting trading partners, including banks, could affect global financial transactions involving Iran.
China's foreign ministry statement did not specify what countermeasures Beijing might take. However, observers point to the possibility of increased diplomatic coordination with Russia and other nations that oppose US sanctions, as well as alternate payment mechanisms to bypass the dollar-based system.
