Trump's new economic squeeze on Iran has a big challenge: China

The new economic measures ordered by Treasury Secretary Scott Bessent against Iran's financial connections may face a significant obstacle in China. Beijing is the world's largest trading partner with Iran and its principal oil importer. While the U.S. endeavors to isolate Iran, President Donald Trump plans to host Chinese President Xi Jinping next month to safeguard their ongoing trade accord.

However, the administration has not disclosed specific plans for targeting China, suggesting potential difficulties in implementing the campaign without risking tensions with China. Edgard Kagan, a senior adviser at the Center for Strategic and International Studies, noted that both Chinese President Xi and Trump have strong interests in avoiding major clashes during the summit.

China has pledged to maintain its cooperation with Iran within international law, rejecting any unilateral actions. China accounts for over 80% of Iran's oil shipments through indirect methods. Despite the sanctions, Beijing stated it would take measures to protect its interests. Analysts suggest that China will only implement enough pressure to compel Iran to negotiate on the Strait of Hormuz, rather than severing all ties.

For now, it appears that both the U.S. and China are seeking to maintain a delicate balance to avoid a sudden escalation.