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Nayan Seth

Han Li

Beijing has pushed back suggestions that Washington might sanction Chinese banks over their commercial links with Tehran, casting fresh uncertainty over next month’s summit.
The Chinese foreign ministry stressed on Friday that dialogue and negotiation were the “only viable way out” regarding Iran.
“China’s position opposing illegal unilateral sanctions is consistent and clear,” ministry spokesman Lin Jian said.
The comments followed US President Donald Trump’s hint on Thursday that such sanctions could be on the table for Chinese lenders – something that the US has so far avoided.
Asked why the US had not sanctioned Chinese banks for their dealings with Iranian entities, Trump said: “Who said I’m not?”
“Well, I don’t have to announce everything, do I?”
Earlier this week, Treasury Secretary Scott Bessent announced new sanctions against 60 entities and individuals around the world, including some in mainland China and Hong Kong, and demanded “immediate action” from nations maintaining economic and commercial ties with Iran.
“Let me be clear: any entity that facilitates money laundering on behalf of Iran will be removed from the US dollar system. The clock just started ticking,” Bessent said on Monday. The administration dubbed the new actions “Economic D-Day”.
The measures were part of the administration’s attempt to put further economic pressure on Tehran after military strikes and diplomatic negotiations failed to reopen the Strait of Hormuz or bring the six-month conflict to an end.


While the latest sanctions targeted a broad network of mainland Chinese and Hong Kong-based procurement, financial and shipping intermediaries, Washington stopped short of blacklisting major Chinese banks and refiners.
The Chinese embassy in Washington also said that “China will do everything necessary to firmly safeguard its rights and interests”.
“Economic warfare and maximum pressure provide no solution,” embassy spokesman Liu Chang said.
The US Treasury Department did not immediately respond to a request for comment.
With just weeks to go until Chinese President Xi Jinping visits the US, Trump’s remarks add another layer of complexity to already fragile US-China ties.
Both sides are seeking to insulate the summit from broader tensions while continuing to ratchet up economic and diplomatic pressure on each other.
Washington and Beijing have continued to impose sanctions, tighten export controls, expand blacklists and target companies, creating a growing list of disputes that could complicate efforts to maintain a stable backdrop for the talks.
Pressure is building on Capitol Hill, particularly from hawkish members of the House Select Committee on China. Politico reported on Wednesday that multiple committee members spoke out in favour of sanctions, including Darin LaHood, a Republican congressman from Illinois, who argued that any country propping up Iran economically, China included, must face consequences. He called bank sanctions a deterrent signal to Beijing and others.
But some lawmakers, especially those from districts hit by China’s past agricultural and rare earth retaliation, remain wary of provoking Beijing further. Haley Stevens, a Democratic congresswoman from Michigan, told Politico that accountability needs strategy behind it, given China’s demonstrated willingness to weaponise its rare earth dominance.
Some experts are signalling the same alarm. Dennis Wilder, who served as the National Security Council’s director for China under president George W. Bush, tweeted that sanctioning major banks like Bank of China would amount to a “nuclear economic weapon”.
Even without formal Treasury action, big international banks might start pulling back from their Chinese counterparts on their own, wary of drawing US regulatory scrutiny, Han Lin, China country director at The Asia Group, told The New York Times – a shift towards broader caution in dealing with Chinese financial institutions.
China is the biggest buyer of Iranian oil, accounting for more than 80 per cent of the country’s total oil exports in 2025, according to data from analytics firm Kpler.
“We want to make clear here today that no one is above the reach of US sanctions,” Bessent said when asked about the possibility of the US imposing secondary sanctions on Chinese banks over their commercial links with Iranian entities.
He added that Trump was “making phone calls to world leaders with specific requests” to halt their engagement with the Iranian regime, but did not identify the countries he had contacted.
But on Thursday, Trump said that “there’s not a lot to speak to” and that he had no interest in engaging with other countries.
“We don’t want to speak to them. We’re not looking to meet or anything. The strait is open.”
On Tuesday, the Chinese foreign ministry said Beijing’s cooperation with Tehran was conducted “within the framework of international law and should not be disrupted”.
Economic wars and maximum pressure were “not the solutions”, ministry spokesman Lin said.


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Latest salvo from US president adds pressure to already fragile US-China ties before expected summit in Washington


Latest salvo from US president adds pressure to already fragile US-China ties before expected summit in Washington.


Talks are ‘only way out’ on Iran, Beijing says as Trump hints at Chinese bank bans

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Latest salvo from US president adds pressure to already fragile US-China ties before expected summit in Washington

Latest salvo from US president adds pressure to already fragile US-China ties before expected summit in Washington