China Threatens Retaliation as US Expands Sanctions on Iran
The U.S. government announced a sweeping new sanctions package – dubbed “Operation Economic Outcast” – targeting Iran and all its trade partners, including China. In response, Foreign Ministry spokesman Lin Jian warned that Beijing would take “all necessary measures” to safeguard its interests and called the sanctions “illegal unilateral.”
Treasury Secretary Scott Bessent described the plan as “the single greatest financial offensive ever” against Iran, warning that finance and business firms refusing to cut ties would face isolation. He stopped short of naming specific nations but hinted that President Trump would call on world leaders to “cease any interactions with the regime.”
Bessent noted that China is the largest buyer of Iranian oil, but the trade has declined under the U.S. blockade of Iran’s ports. He maintained that no institution was above U.S. sanctions, even large Chinese banks.
The Pentagon’s move comes ahead of a high‑stakes meeting in Moscow between Donald Trump and Xi Jinping later this month – a convergence that expects to test limits of global supply‑chain resilience, especially as China controls the majority of rare‑earth ingredients used in high‑tech products.
China has already tightened export controls on rare‑earths in past U.S. trade negotiations, a point repealing the policy might elicit. Analysts say the sanctions’ short‑term effect on Iranian energy revenue will likely be small: roughly 90% of Iran’s crude goes to China, which historically does not adhere to unilateral U.S. restrictions.
Iran’s Economy Minister Ali Madanizadeh declared Tehran is “fully prepared” for the expanded sanctions, promising a “two‑year plan” to absorb the pressure. He also warned that U.S. measures would be a “defeat” for Washington.
While Iran, Pakistan, Turkey and Iraq will risk U.S. scrutiny, they all prefer keeping commercial lines open. “Economic pressure on Tehran does not work; the regime can absorb the pain and then load it onto the people,” says Ali Vaez of the International Crisis Group.
The new sanctions—targeting almost 60 entities and vessels connected to Iranian oil trade—pass months after the start of the Iran–U.S. confrontation. Though the U.S. claims it has cornered the country financially, experts argue the package may push global economic players into a more fractured, multipolar trade environment.
For more on Iran’s readiness to face expanded sanctions, read the BBC piece: Iran says it is 'fully prepared' to counter widened US economic sanctions.
