Xi signals defiance as US threatens sanctions over Iran help

Beijing has signaled defiance towards the US as President Donald Trump threatens sanctions over Iran in the wake of recent economic ties. China, Iran's top oil importer, has given Tehran a financial lifeline, while President Xi Jinping shows no inclination to aid Trump in ending the conflict. This move underscores the risk of a clash between the two superpowers as Trump pushes for an economic assault on Iran in an attempt to coerce the Islamic Republic into negotiations.

China has taken on the role of Tehran's biggest oil buyer and Xi appears unwilling to assist Trump in resolving the conflict that is diverting US resources from Asia, potentially increasing his leverage before an upcoming leaders' summit. For the US, targeting a major Chinese bank that supports Iran's wartime economy could trigger a more significant reaction from China.

A senior US official stated that China wants the conflict kept under control but has no incentive to help Trump end it without gaining something in return. Beijing could potentially reduce oil purchases from Iran to appease Washington or keep income from these transactions inside Chinese banks. Tightening controls on Chinese-made dual-use components that could be used in Iran's weapons program is another option.

Ignoring Trump entirely may infuriate the US leader before the September 24 summit aimed at preserving the trade truce between the world's two largest economies. China is already buying less discounted Iranian crude due to the US naval blockade restricting supply. The US plans to limit pending overcapacity tariffs on China at a level previously approved by Beijing, according to sources familiar with the matter.

Chinese state media noted that the US is caught in its own crisis, citing high gasoline prices and a national debt exceeding $40 trillion.