Trump will need China for his new economic war against Iran. Good luck getting Xi on side

When US Treasury Secretary Scott Bessent introduced "Operation Economic Outcast," he did not mention China as a potential decisive player in the sanctions against Iran. China, the world's second-largest economy, is a critical economic lifeline for Tehran, purchasing the majority of its oil exports and engaging in other trade. Beijing rejects the US sanctions as "unilateral" and defends its right to trade with partners like Iran and Russia.

China's Foreign Ministry vowed to safeguard its "legitimate rights and interests" in the face of US threats. Bessent's threat comes ahead of a visit by Chinese leader Xi Jinping to the US, where they could make progress on a critical trade truce. However, China may not accept a situation where Washington determines what Chinese companies can legally trade with third countries.

US analysts suggest limited space for Washington's demands, as China's imports of Iranian oil are conducted through a shadowy system insulated from the US dollar sanctions. China's Foreign Ministry warned of taking "necessary measures" to protect its rights and interests, while US analysts believe that sanctioning Chinese banks and shipping firms could lead to Beijing responding and shifting the focus of the upcoming summit to damage control.