Trump hints at sanctions on Chinese banks over Iran ties before Xi’s expected US visit

President Donald Trump suggested on Thursday that Chinese banks might face sanctions due to their commercial ties with Iran, as the nation prepares for a visit by Chinese President Xi Jinping. When asked about why the US had not yet imposed sanctions on Chinese banks for their dealings with Iranian entities, Trump responded, "Who said I’m not?" He added, "I don’t have to announce everything, do I?"

This announcement came shortly after Treasury Secretary Scott Bessent unveiled new sanctions against 60 entities and individuals worldwide, including some in mainland China and Hong Kong. Bessent emphasized that any entity aiding money laundering for Iran would be removed from the US dollar system. The administration termed these measures "Economic D-Day," aiming to increase economic pressure on Iran following failed military strikes and diplomatic efforts.

While the latest sanctions targeted a wide range of Chinese and Hong Kong-based companies involved in procurement, financial services, and shipping, Washington refrained from blacklisting major Chinese banks and refiners. The Chinese embassy in Washington and the US Treasury Department did not immediately comment on Trump's remarks.

The US-China relationship remains strained as both nations continue to impose sanctions, tighten export controls, and expand blacklists, leading to a growing list of disputes that could complicate efforts to ensure a stable backdrop for their summit. Growing pressure from Congress, particularly from members of the House Select Committee on China, favors sanctions, but some lawmakers express concerns about provoking Beijing further.

China remains the largest buyer of Iranian oil, accounting for more than 80% of the country's total oil exports in 2025, according to Kpler data. Bessent affirmed that "no one is above the reach of US sanctions," hinting at potential secondary sanctions on Chinese banks involved with Iranian entities. Trump, however, stated that he had no interest in engaging with other countries and that the strait remained open.