Bessent to hold talks with China on Iran financial ties before Trump-Xi summit

US Treasury Secretary Scott Bessent anticipates discussions with Chinese Vice Premier He Lifeng regarding China's financial ties with Iran. This dialogue precedes a summit between US President Donald Trump and Chinese President Xi Jinping. Amid the ongoing US-Iran conflict, the US aims to rally international support for its sanctions, targeting Iran's financial infrastructure and facilitating negotiations.

Bessent disclosed during his annual Capitol Hill testimony that preliminary talks have been productive, and he anticipates further engagement during President Xi's visit. He did not disclose the meeting's date or location, as Beijing has not confirmed these details yet. The US recently expanded secondary sanctions targeting businesses and nations with ongoing transactions with Iran, warning that entities engaging with Tehran risk dollar-based financial isolation.

While the US has imposed measures against China's "teapot refineries," purchasing Iranian crude at reduced prices, it has not taken a more restrictive step against Chinese financial institutions. China remains Iran's primary trading partner in 2025, and Beijing has previously pledged to protect its interests. The EU expressed support for the US sanctions campaign at the G20 finance gathering, maintaining readiness for additional actions.

The UAE halted its trade and financial dealings with Iran, citing Iran's regional threat. Bessent also praised the UAE's stance and reported a positive discussion with UAE financial officials. The Treasury Department has targeted Russia's VTB Bank and Turkish and UAE financial entities in recent sanctions.