Don’t let Iran sanctions derail US-China engagement

The US push to isolate Iran economically puts Beijing in the crosshairs. Ahead of Xi Jinping’s state visit, both sides must contain the fallout to protect vital broader ties

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Vessels near the Strait of Hormuz, as seen from Musandam, Oman, on August 31. The US needs to find a way out of its Iran quagmire. Photo: Reuters

SCMP Editorial

Editorials represent the views of the South China Morning Post on the issues of the day.

Published: 7:15am, 1 Sep 2026

The United States’ stalled war on Iran continues to loom large in its relations with China. In March, President Donald Trump delayed a state visit to Beijing until May to manage developments in the Iran conflict. Now, ahead of President Xi Jinping’s scheduled state visit to Washington on September 24, the Iran issue has again reared its head as the US tries to extract itself from a quagmire of its own making. Washington has widened US sanctions targeting dealings with Iran in what it described as an “economic D-Day” aimed at isolating the country from the global economy, following six months of conflict.

This comes in the wake of failed peace talks and a US naval blockade, which was lifted after the parties reached a memorandum of understanding and reimposed after alleged Iranian attacks on commercial shipping. The two exchanged a round of military strikes over the weekend.

Announcing the new measures, including sanctions on 60 entities around the world, US Treasury Secretary Scott Bessent said any nation financially partnering Iran would be isolated, along with banks and businesses that refused to cut ties. Whether the measures are effective depends on the reaction from Iran’s trading partners. They include China, the biggest buyer of Iranian oil. The measures target mainland Chinese and Hong Kong-based procurement, financial and shipping intermediaries. But none of them are major banks or refineries.

China has warned of reprisals against possible further US sanctions. “China will do everything necessary to firmly safeguard its rights and interests,” the foreign ministry said. Dialogue and negotiation were the only way forward, a spokesman added – rightly so, as economic warfare would only serve to fuel tensions and lead to spillover risks.

The US needs to find a way out of its Iran dilemma, short of the military option – which would be a very expensive way to force Tehran back to the negotiating table. The other option is economic warfare.

So far, economic sanctions have not been very effective. The US now hopes to isolate Iran by undermining China’s substantive relations with the Islamic Republic. In Trump’s trade war, China retaliated, stood firm and eventually prevailed. If a similar scenario unfolds over Iran, the world will watch how China responds.