China indicated Tuesday that it would not adhere to demands from the Treasury Department to cut off all economic ties to Iran, citing risks to international stability and asserting it would not bow to “economic warfare.”
Chinese Foreign Ministry spokesperson Lin Jian said at a press conference that Beijing would not accede to U.S. demands regarding Iran and that its current policy aligns with international law.
“Economic warfare and maximum pressure provide no solution. On the contrary, they 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,” Mr. Lin said. “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.”
The Treasury Department announced Monday a major expansion of secondary sanctions targeting Iran, aiming to force other nations to cut all economic ties with the Islamic Republic.
Treasury Secretary Scott Bessent said during a press conference that countries retaining economic ties with Iran would face harsh consequences. Notably, nations found in violation of the new restrictions could be cut off from the U.S. dollar system.
However, Mr. Bessent’s announcement gave scant details on exactly what the U.S. would do to countries maintaining economic relations with Iran as he warned potential violators.
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“Well, we are giving everyone the opportunity to remedy bad behavior. Why would I want to blow up the global financial system?” Mr. Bessent said when asked why he did not impose sanctions immediately.
China remains one of Iran’s most valuable links to international markets. Beijing purchases about 90% of Iran’s crude oil, and Tehran maintains access to China’s banking system, which helps Iran mitigate the effects of Western sanctions.
The Treasury Department designated more than 60 entities and ordered Bank Melli Iran to shut down, but Chinese state banks were largely spared.
If U.S. sanctions hit Chinese banks hard and cut them off from the U.S. dollar system, it could undermine the dollar’s centrality in global trade and, in turn, the power of Western sanctions.
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