China Rejects U.S. Sanctions on Iran Trade After New Designations
Key Takeaways
- •The United States imposed a new round of sanctions on individuals and entities tied to Iran’s trade and economy, including the shipping and oil sectors.
- •The designations targeted brokers, companies, and shadow-fleet vessels across several regions that helped move Iranian oil and revenues.
- •No sanctions were placed on any Chinese banks in the latest U.S. action.
- •China said it opposes unilateral sanctions and described them as harmful to the global economic and financial order.
- •Beijing said its cooperation with Iran is lawful and that it will do what is necessary to protect its rights and interests.
China on Tuesday signaled that it would not sever its trade and other ties with Iran after the United States unveiled new sanctions on Monday targeting Chinese and Hong Kong entities accused of helping Tehran conduct business.
On Monday, the U.S. administration announced a new round of sanctions against individuals and entities linked to Iran’s trade and economy, including the shipping and oil sectors. The measures, part of what Treasury Secretary Scott Bessent called “Operation Economic Outcast,” did not include sanctions on any Chinese banks.
The oil trade remains a central focus of the U.S. sanctions campaign, which continues to rely on designations across the supply chain rather than broad banking restrictions. Monday’s designations included brokers, companies, and shadow-fleet vessels operating across the UAE, Hong Kong, China, Singapore, Switzerland, and Europe that move Iranian oil and channel revenues to Iranian entities. The Office of Foreign Assets Control also sanctioned international companies operating in Iran’s petroleum sector and helping facilitate the movement and sale of Iranian crude and petroleum products.
In China’s first official public response to the so-called “Economic D-Day,” Foreign Ministry spokesperson Lin Jian said at a regular press conference on Tuesday that “China has made clear on many occasions its firm opposition to illicit unilateral sanctions that have no basis in international law or the authorization of the UN Security Council. Economic warfare and maximum pressure provide no solution.”
Lin added that such actions by the United States “only serve to fuel tensions and lead to risk spillover, which will disrupt the global economic and financial order, and harm the legitimate rights and interests of other countries.”
“China will do everything necessary to firmly safeguard its rights and interests,” he said on multiple occasions, suggesting that Beijing could respond if the sanctions regime expands further.
Asked whether China would alter some of its conduct and interactions with Iran to comply with U.S. demands, Lin said that “China’s cooperation with Iran is conducted within the framework of international law, thus should not be disrupted. China is closely following the developments, and will do everything necessary to firmly safeguard its rights and interests.”
By Charles Kennedy for Oilprice.com
