In brief
Following the U.S. Treasury's announcement of a new sanctions package dubbed "Operation Economic Outcast," China’s foreign ministry denounced the measures as illegal unilateral action. The statements come as the U.S. prepares to pressure countries that trade with Iran, including China, the largest importer of Iranian oil. Beijing insists that its cooperation with Iran remains within international law and will not be disrupted. Analysts warn that the sanctions may have limited impact on Iran’s revenues, given China’s role as the chief buyer and lack of compliance with U.S. restrictions.
Chinese foreign ministry spokesman Lin Jian said Beijing is firmly opposed to what it called "illegal unilateral sanctions" imposed by the United States and would take "all necessary measures" to protect its rights.
The stance follows Treasury Secretary Scott Bessent’s announcement on Monday that the U.S. would expand sanctions against Iran and any nation financially partnering with Tehran, threatening isolation for non‑cooperative banks and businesses.
China is the largest buyer of Iranian oil, a trade that has declined under U.S. blockade measures. Beijing maintains that its cooperation with Iran is conducted within the framework of international law and should not be interfered with.
Bessent described the sanctions as "the single greatest financial offensive ever" against Iran, warning that refusing to cut ties would leave banks and businesses exposed.
He declined to name specific nations but said President Trump would call world leaders to request cessation of interactions with the regime. In a separate statement, Bessent clarified that "no one was above the reach of U.S. sanctions," including Chinese banks.
China’s response comes at a time when Washington anticipates potential retaliation from Beijing, which controls a majority share of the world’s rare earths and other critical minerals used in high‑tech manufacturing.
The U.S. has previously tightened export controls on rare earths as part of trade negotiations, signalling a broader strategy to counter perceived threats.
Iran’s Economy Minister Ali Madanizadeh announced Tehran’s readiness to face the widened sanctions, suggesting a two‑year plan to manage the impact and claiming Tehran had been awaiting these moves.
Analysts predict that the new package will have only a limited direct impact on Iranian energy revenues. David Oxley of Capital Economics noted the Chinese country’s role as the principal oil buyer and its historical refusal to recognize U.S. sanctions.
In a related development, the U.S. described the sanctions as "Operation Economic Outcast" and an "economic D-Day" against Iran, while the U.K. supported the U.S. push for diplomatic resolution.
Other potential partners—such as India and Russia—have yet to respond to the U.S. announcement.
