The Chinese Foreign Ministry stated Tuesday that new U.S. sanctions against Iran will increase international tensions rather than resolve underlying issues. The statement follows an announcement by the U.S. Treasury Department on Monday expanding its authority to sanction individuals and entities involved in five specific sectors of the Iranian economy: digital assets, technology, gold, aviation, and shipping.
Spokesperson Lin Jian told reporters that China views the U.S. policy of maximum pressure as economic warfare that creates spillover risks. The Treasury Department’s recent actions include sanctions against nearly 60 entities, individuals, and vessels. The department stated these parties enable activities such as nuclear and missile technology procurement, cyber operations, and the generation of oil revenue.
The U.S. moves come as China remains Iran's largest trading partner and its primary buyer of oil exports. While Treasury Secretary Scott Bessent did not name specific countries during a Monday press conference, he stated that the U.S. would sanction anyone conducting business with Iran and expected to see the ramifications of their actions quickly if they did not respond to U.S. pressure.
The conflict over these sanctions introduces a specific point of friction ahead of a scheduled meeting in Washington next month between President Trump and Chinese President Xi Jinping. The two leaders were expected to discuss a trade deal involving Chinese purchases of American agricultural products, Boeing jets, and U.S. oil. The ongoing enforcement of sanctions against Chinese firms, which the Chinese Commerce Ministry previously blocked in May by calling them violations of international law, may complicate these negotiations.
For global markets, the "spillover risks" cited by Lin Jian refer to potential disruptions in shipping and energy supplies as the U.S. targets tankers and aviation networks. Residents in the region or those employed by the 60 newly sanctioned entities will notice immediate restrictions on their ability to conduct dollar-denominated business or access international technology. The next key date is the scheduled state visit and meeting between Trump and Xi next month, where the two governments are expected to address these economic disagreements directly.
In response to the U.S. actions, Lin Jian stated that China will take necessary measures to protect its rights and interests. Iran has also vowed to retaliate following the widening of the sanctions, which the U.S. administration refers to as Operation Economic Outcast. The specific retaliatory steps or the exact dates for their implementation have not yet been reported.