Beijing has issued a warning to the United States, vowing retaliation due to President Donald Trump’s recent sanctions targeting Iran, which could have significant implications for its trading partners.
On Monday, US Treasury Secretary Scott Bessent unveiled stringent measures cautioning that countries continuing trade with Iran may face exclusion from the dollar-based financial system.
China is currently the purchaser of approximately 90 percent of Iran’s oil, providing a critical economic support to the Islamic Republic as it struggles with previous US sanctions that have limited its access to American financial markets.
The latest sanctions announced by the US have been described as ‘the toughest in history,’ targeting 60 individuals, entities, and vessels, some of which are located in Hong Kong and mainland China, although no specific Chinese financial institutions were mentioned.
China’s Foreign Ministry Spokesperson, Lin Jian, strongly emphasized, “China will do everything necessary to firmly safeguard its rights and interests,” in light of the economic ‘D-Day’ predicted by the new US sanctions.
‘China has made clear on many occasions its firm opposition to illicit unilateral sanctions that have no basis in international law or the authorisation of the UN Security Council,’ he said.
‘Economic warfare and maximum pressure provide no solution. On the contrary, they only serve to fuel tensions and lead to risk spillover, which will disrupt the global economic and financial order, and harm the legitimate rights and interests of other countries.
‘The pressing task is to facilitate the deescalation of the situation and return to dialogue and negotiation as soon as possible.’
President Donald Trump and Chinese President Xi Jinping a state dinner at the Great Hall of the People in Beijing (May 2026)
Experts yesterday claimed that Washington would be wary of how China would react to the sanctions, with any curbs on China’s exports of critical minerals as a result especially sensitive.
Last year, Beijing showed how dependent the US was on these resources that are essential to high-tech production, like electric cars, electronics and military weapons, by limiting their exports and bringing American manufacturing to a halt.
As part of a trade war between Trump and Chinese President Xi Jinping, China forced companies to get approval from the government before they were allowed to ship the rare minerals abroad.
MORE STORY: Sheriff Uncovers 1,800 Pounds of Suspected Black-Market Marijuana Shipped from California to Georgia
Bessent called the move ‘economic coercion’ and a ‘global supply chain power grab’, seeing as China has a global monopoly on the extraction of the rare earth materials, with analysts claiming it was China’s way of demonstrating their bargaining leverage.
Experts have warned that China may similarly react if the US enforces the latest sanctions.
China’s state-owned refiners largely comply with current Iran sanctions, however private companies, referred to as ‘teapots’, are allowed to buy and process Iranian oil.
Earlier this year, the US tried to sanction these private companies although Xi’s government ordered them to ignore the measures.
Bessent previously urged co-operation from China, although the US blockade of Iran’s ports, renewed in mid-July, has already cut Iranian oil flows to China.
‘No one is above the reach of US sanctions,’ Bessent said when asked about China’s trade ties to Tehran. ‘It is now time for world leaders to make a decision between America and Iran.’
Although Bessent declined to identify the countries that would be targeted or reveal when the penalties would take effect, Tehran expressed confidence that major trading partners would resist Washington’s pressure campaign.
Iranian Economy Minister Ali Madanizadeh yesterday claimed that neither China nor Russia had ‘accepted’ the US measures, predicting that other countries would resist them also.
Iran has also promised retaliation to the sanctions, Madanizadeh adding, ‘We are fully prepared for the US sanctions.’
He told state television: ‘Naturally, the enemies intend to launch an economic terrorist attack on us, but we also have our own tools and know how to play the game. Our defense is no longer so defensive; the enemies should wait for an attack.’
Xi met with Jordan’s King Abdullah II in recent days where they are believed to have discussed Iran and the war in Gaza, with China’s foreign minister Wang Yi similarly holding talks with his Kuwaiti counterpart.
Beijing’s threats of retaliation come only weeks before Trump and Xi are set to meet in Washington, where they are expected to discuss prolonging their trade war truce that was agreed in October.