China warns US over Iran sanctions move

Chinese authorities have warned that Beijing could retaliate if the United States expands its secondary sanctions on Iran to include more Chinese companies. Officials stated that China would take "all necessary measures" to safeguard its rights and interests should Chinese firms come under increased U.S. pressure.

The warning comes in response to a new U.S. sanctions package that aims to tighten economic pressure on Iran. The exchange underscores rising concern in Beijing that Chinese commercial entities could increasingly be drawn into U.S. efforts to curb Tehran’s access to global finance and trade.

The latest measures announced by the U.S. Treasury target about 60 individuals, companies and vessels linked to Iran. The package includes entities located in mainland China and Hong Kong, highlighting Washington’s use of secondary sanctions to reach beyond Iran’s borders.

U.S. Treasury Secretary Scott Bessent described the steps as part of a broader effort to further isolate Iran financially. He said the objective is to cut off Iran’s financial lifelines by restricting access to international markets and services.

Despite the inclusion of entities in China and Hong Kong, the package stopped short of naming major Chinese banks. The absence of such large institutions in the latest round indicates a focus on specific companies and vessels rather than the core Chinese banking system at this stage.

Scott Bessent warned that countries continuing to trade with Iran could face exclusion from the dollar-based financial system. He stressed that nobody was beyond the reach of U.S. sanctions, without specifying which institutions or countries might be targeted next.

The prospect of restricted access to the dollar system raises the stakes for foreign companies and financial institutions dealing with Iran. It also increases the potential for friction with governments that oppose unilateral sanctions.

Chinese officials reiterated their opposition to unilateral sanctions that lack authorisation from the U.N. Security Council. They argued that such measures undermine legitimate rights and interests of third countries and their companies.

Alongside its warning of potential retaliation, Beijing called for de-escalation of the standoff over Iran and urged a return to negotiations. Chinese authorities framed dialogue as the preferred path to addressing differences between Washington and Tehran.

By coupling criticism of unilateral sanctions with calls for renewed talks, China signalled both resistance to U.S. pressure on its firms and support for a diplomatic approach to the broader U.S.-Iran dispute.

The combination of new U.S. measures involving entities in China and Hong Kong and Beijing’s threat of possible retaliation points to a potential new source of strain in U.S.-China relations. The issue intersects with China’s broader economic ties with Iran and its exposure to secondary sanctions.

Heightened tensions over sanctions enforcement could affect how Chinese companies and financial institutions approach transactions linked to Iran. It may also influence broader discussions between Washington and Beijing on trade, financial flows and adherence to international sanctions regimes.