China Fires Back at US Sanctions on Iran, Protects Trade Ties

Sun Sep 06 2026 02:26:39 GMT+0000 (Coordinated Universal Time)

When the US rolled out new sanctions targeting Iran, China dubbed them illegal and warned it would step in—over the next months, Beijing’s moves could shape global oil and rare‑earth flows.

The US announced a sweeping sanctions package against Iran that now threatens trade partners—including China, which supplies about 90% of Iran’s oil. Beijing’s foreign ministry called the move unlawful, vowing to defend its interests. Officials warned China would take "necessary measures" to shield its banks and business ties. As talks between Trump and Xi loom, analysts note that while sanctions may erode Iran’s oil income, the impact could be muted by China’s continued imports and a strategic pushback against unilateral restrictions.

China Fires Back at US Sanctions on Iran, Protects Trade Ties

The United States has just announced a new, wide‑ranging sanctions package aimed at Iran and its trade partners, sparking a sharp response from Beijing.

Foreign ministry spokesman Lin Jian blasted the move as "illegal unilateral sanctions" and vowed China would take "all necessary measures" to safeguard its economic interests.

China is the biggest buyer of Iranian oil—though sales have slowed under the US blockade of Iranian ports, Beijing still imports roughly 90% of Iran’s crude. The U.S. Treasury Secretary Scott Bessent warned that anyone who continues to do business with Tehran could find themselves isolated.

With a summit between President Donald Trump and President Xi Jinping scheduled next month, Washington is wary of potential retaliation. China already tightened its rare‑earth export controls in previous trade talks with the U.S., so any pressure on its mineral supply chain could ripple through global tech production.

Analysts say the sanctions’ direct effect on Iranian revenue may be limited. David Oxley, chief commodities economist, described the package as a "damp squib," noting that China’s continued purchases could cushion the blow.

Meanwhile, Iran’s government remains defiant. Economy Minister Ali Madanizadeh declared Tehran fully prepared to counter the sanctions, with a two‑year plan already in place to manage the fallout.

Beyond China, other trading partners such as India and Russia have not yet reacted, and some Western allies struggle to balance their ties with Iran versus the pressure from Washington.

Future developments will hinge on the outcome of the Trump–Xi talks and whether Beijing sees the sanctions as a threat to its global economic role.