China has rejected US President Donald Trump's threat to impose sweeping economic penalties on countries that continue doing business with Iran, saying sanctions and pressure will not resolve the conflict.
“Imposing sanctions and exerting pressure do not help to solve the issue,” Chinese Foreign Ministry spokesperson Lin Jian said at a news briefing. He called on relevant parties to take responsible measures and resolve the dispute through diplomatic and political means.
Lin also said military action, sanctions and pressure only increase tensions and do not serve the interests of any party. Beijing has opposed unilateral sanctions imposed without United Nations authorisation, he added.
Trump’s ‘Economic D-Day’ targets Iran’s lifelines
Trump on Wednesday announced what he called an “Economic D-Day” against Iran, threatening “tremendous economic consequences” for countries and entities that continue providing Tehran with financial or commercial support.
The US president said Washington would target those providing Iran with what he described as an economic “lifeline”, including through financial institutions, businesses, airports and government entities.
Trump specifically cited oil smuggling, financial transactions, exchange houses, ship registries and front companies, saying such activities needed to stop.
US Treasury Secretary Scott Bessent subsequently said Washington would impose the “toughest sanctions in history” on Iran as part of an effort to intensify economic pressure on Tehran.
Bessent said the US would use its “full might and force” against countries that transfer money, buy Iranian oil or conduct seaborne shipping with Iran. Asked about China, he urged Beijing to “get with the program”.
China is Iran’s biggest oil buyer
China is a crucial economic partner for Iran and the largest buyer of its oil. China buys more than 80% of Iran's exported oil, according to Reuters.
Beijing has maintained economic ties with Tehran while keeping diplomatic channels open with parties involved in the conflict.
China has repeatedly opposed unilateral US sanctions and argued that economic pressure is not the way to resolve the dispute.
Chinese state-owned companies and major banks have, however, historically been cautious about violating US sanctions because of their exposure to the American financial system and the dollar-clearing network.
Washington has already sanctioned Chinese companies and independent refineries over Iranian oil trade. The latest campaign could put further pressure on Chinese buyers and other entities involved in Iran's oil trade.
Iran hits back at Trump’s sanctions threat
Iran has also condemned Trump's latest threat, describing the US campaign as “economic terrorism”.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf said Tehran was prepared to “sacrifice our wealth” to defend the country's “dignity and honor”, according to Iran's semi-official Tasnim news agency.
He said Iran would need to prepare for what he called unjust sanctions and find ways to overcome them.
How Trump’s Iran sanctions could pressure China
Trump's latest campaign puts China in a difficult position as Washington seeks to cut off Iran's remaining economic lifelines.
Beijing, which buys the bulk of Iran's exported oil, has rejected the US approach and called for negotiations and a political settlement instead.
Any US move targeting Chinese entities involved in Iranian oil trade could put further pressure on Tehran's oil revenues while also increasing tensions between Washington and Beijing.
For now, Beijing is refusing to endorse Washington's sanctions campaign and continues to push for a diplomatic resolution to the US-Iran conflict.