China hits out at ‘illegal’ new US sanctions on Iran and trading partners

China has firmly rejected the United States' plans to impose additional economic sanctions on Iran and its trading partners, including the nation of China itself. Foreign Ministry spokesman Lin Jian stated that China adamantly opposes the "illegal unilateral sanctions," vowing to implement measures to safeguard its rights. This reaction came after US Treasury Secretary Scott Bessent announced the new sanctions on Monday, warning that any entity financially connected to Iran would face isolation.

China is the largest importer of Iranian oil, though trade volumes have decreased under the existing US blockade of Iran's ports.

Lin Jian emphasized that China and Iran have maintained their cooperation within the framework of international law and cautioned against any interference or disruption. Bessent described the new sanctions as the "single greatest financial offensive ever" against Iran, stating that financial institutions and businesses would be affected if they continued to engage with Iran. He did not single out any specific nations but affirmed that no one was immune to US sanctions, including Chinese banks.

The announcement of the sanctions precedes planned discussions between US President Donald Trump and Chinese President Xi Jinping. Washington may be cautious of potential retaliation from Beijing, as China is a major consumer of rare earths and other essential minerals vital to high-tech manufacturing. China has previously tightened rare earth export controls as part of prior trade negotiations with the US.

Iranian Economy Minister Ali Madanizadeh announced that Tehran is fully prepared to face the expanded sanctions, which he predicted would result in another setback for the US. Madanizadeh stated that the Iranian government has been ready for these events and possesses strategies to navigate the situation, asserting that Tehran has been anticipating the US plans for an extended period.

The US sanctions, dubbed "Operation Economic Outcast" and described as an "economic D-Day" against Iran, follow almost six months of the ongoing Iran conflict. This conflict has led to global oil price increases, with Iran effectively halting exports through the Strait of Hormuz, a critical waterway for the global economy. Attempts at diplomatic resolution have thus far failed, and a 60-day ceasefire expired recently without any progress toward a settlement.

The US Treasury Secretary claimed that the new sanctions mark the end of the Iranian threat, rather than merely managing it. Iran is already subject to stringent sanctions from the US, but Bessent noted that the new measures extend further, imposing sanctions on nearly 60 entities, individuals, and vessels involved in Iran's illicit oil trade.

However, analysts remain skeptical about the potential impact of the latest sanctions on Iran's energy revenues, as China has historically ignored US sanctions and is unlikely to change its stance.