China warns US of retaliation over expansion of Iran sanctions

China has issued a stern warning to the United States regarding a potential retaliation if Washington extends its sanctions campaign against Iran to include Chinese companies. This warning emerged following US Treasury Secretary Scott Bessent's announcement on Monday of measures designed to further isolate Iran and penalize countries that continue to engage in trade with Tehran by excluding them from the dollar-based financial system.

Beijing has reportedly cautioned against any significant expansion of secondary sanctions targeting Chinese businesses, with a foreign ministry spokesperson asserting that China would employ "all necessary measures" to safeguard its interests. The spokesperson reiterated Beijing's stance against unilateral sanctions lacking UN Security Council authorization and called for de-escalation and a return to negotiations over the US-Iran conflict.

Washington's latest sanctions package has targeted 60 individuals, companies, and vessels, including entities located in mainland China and Hong Kong. However, the package avoided singling out major Chinese banks allegedly involved in facilitating Iranian oil trade. When questioned about Chinese financial institutions on Monday, Bessent stated that no entity is beyond the reach of US sanctions, though he did not specify which entities might face additional measures or the timing of any potential sanctions.

The potential sanctions against major Chinese companies are particularly contentious, as China has historically been the largest importer of Iranian crude oil.