China Threatens Retaliation Over Expanded US Iran Sanctions
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China Threatens Retaliation Over Expanded US Iran Sanctions
- China has vowed to take "all necessary measures" to protect its interests following new US sanctions targeting entities doing business with Iran, including some in mainland China and Hong Kong.
- Chinese Foreign Ministry spokesman Lin Jian stated on Tuesday, August 25, 2026, that cooperation between China and Iran is within international law and should not be disrupted.
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China has issued a strong warning to the United States, indicating it could retaliate if Washington expands its sanctions campaign against Iran to include more Chinese companies. This comes after US Treasury Secretary Scott Bessent announced new measures on Monday, August 24, 2026, aimed at further isolating Iran and threatening countries that continue to trade with Tehran with exclusion from the dollar-based financial system. The sanctions unveiled targeted 60 entities, individuals, and vessels globally, including some in mainland China and Hong Kong.
Despite these measures, the US stopped short of directly targeting major Chinese financial institutions. However, Bessent emphasized that “no one is above the reach of US sanctions,” suggesting that further actions could be taken.
China, which is Iran’s largest oil customer, buying an estimated 90% of its oil exports, has sharply condemned these sanctions. Chinese Foreign Ministry spokesman Lin Jian stated on Tuesday that China “firmly opposes illegal unilateral sanctions that have no basis in international law” and will “do everything necessary to firmly safeguard its rights and interests.” He also stressed that economic warfare and maximum pressure do not provide solutions and only escalate tensions.
This diplomatic tension arises just weeks before US President Donald Trump and Chinese President Xi Jinping are scheduled to meet in Washington next month to discuss extending a trade truce. Analysts suggest that a significant expansion of US sanctions on China could jeopardize this fragile relationship. China has previously taken steps to counter foreign sanctions, including instructing Chinese banks and companies not to comply with US sanctions on some refiners in May.