China Vows Retaliation as US Expands Iran Sanctions

China Challenges U.S. Sanctions on Iran

The foreign ministry of the People’s Republic of China on Sunday condemned the U.S. Treasury Secretary Scott Bessent's new sanctions against Iran and its trading partners as "illegal unilateral sanctions" and vowed to take "all necessary measures" to protect its interests.

Bessent described the package as the "single greatest financial offensive ever" against Iran, warning that banks and businesses anywhere who refuse to sever ties with Tehran would face isolation. He added that President Donald Trump would reach out to world leaders with specific requests to end interactions with the regime.

China, which supplies roughly 90% of Iran’s oil to its domestic market, stated that its cooperation with Tehran fits within international law and should not be interfered with. The country highlighted its recent tightening of export controls on rare‑earths in response to prior U.S. trade talks.

Iranian Economy Minister Ali Madanizadeh said the regime is "fully prepared" for the expanded sanctions, describing the new measures as a "second defeat" for the U.S. and claiming a two‑year plan is in place to manage the impact.

Against this backdrop, analysts such as David Oxley warn that the sanctions might have only a limited short‑term effect on Iranian energy revenues, as China has historically refused to recognize U.S. sanctions. A similar caution was voiced by Ali Vaez of the International Crisis Group, who added that China typically opposes unilateral sanctions and will comply only with multilateral ones.

The United States, meanwhile, framed the new measures as "Operation Economic Outcast" and an "economic D‑Day" against Iran, following a six‑month resonance of the Iran crisis that has pushed oil prices higher and disrupted traffic through the Strait of Hormuz.

As U.S. and Chinese presidents are scheduled to meet next month, Washington remains wary of Beijing’s power in the global critical‑minerals market, while still hoping for a diplomatic resolution to the Tehran dilemma.

For follow‑up coverage, see BBC Asia.