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China vows to protect interests as US expands Iran sanctions

Beijing has promised to safeguard its interests after US Treasury Secretary Scott Bessent announced a wider economic blockade against Iran and its trade partners.

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Inewgen
25 Aug 2026Source: BBC World3 min read (0 views)
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China vows to protect interests as US expands Iran sanctions

Stock photo for illustration only, not from the actual event

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  • The United States announced plans to widen economic sanctions targeting Iran and its trading partners.
  • US Treasury Secretary Scott Bessent warned that nations financially partnering with Iran will face isolation.
  • China maintains its cooperation with Iran follows international law and defends its rights.
  • The diplomatic friction comes ahead of planned talks between Donald Trump and Xi Jinping.

The Chinese government has vowed to fiercely protect its national interests following the latest announcement by the United States to widen economic sanctions against Iran and its key trading partners, including Beijing. This development places the spotlight back on Beijing, which remains the largest buyer of Iranian crude oil, despite trade volumes shrinking under the weight of Washington's port blockades.

US Treasury Secretary Scott Bessent unveiled these aggressive new measures, issuing a stern warning that any nation maintaining financial ties with Tehran will be isolated from the global financial system. Addressing inquiries regarding Chinese financial institutions, Bessent emphasized that no individual or entity is exempt from the reach of American sanctions.

cargo container port trade shipping

Stock photo for illustration only, not from the actual event

In response, official representatives from Beijing asserted that all commercial and diplomatic cooperation between China and Iran has consistently operated strictly within the boundaries of international law, insisting it must remain free from external disruption. Reports also indicate that US President Donald Trump plans to initiate phone calls with various world leaders to deliver specific demands to sever ties with the Iranian regime.

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"Cooperation between China and Iran has always been conducted within the framework of international law and should not be interfered with or disrupted."

Chinese Foreign Ministry representative

The timing of this announcement precedes high-stakes talks scheduled between President Donald Trump and Chinese President Xi Jinping next month. Washington is anticipated to tread carefully to avoid severe retaliation from Beijing, given that China processes the vast majority of the world's rare earths and critical minerals essential for manufacturing advanced technological hardware.

The escalation of US economic pressure on Iran and its trade partners highlights a broader geopolitical strategy that directly intersects with global supply chains. Because China holds a dominant position in the processing of critical rare earth minerals—a commodity it has previously restricted in trade disputes—any retaliation from Beijing could significantly impact Western high-tech manufacturing, making the upcoming presidential summit a crucial moment for global trade stability.

Prior to these developments, Beijing had already tightened its export controls on critical rare earths during earlier trade negotiations with Washington, and state media reports indicate the government maintains a structured two-year plan to manage such geopolitical shocks.

Source: BBC World

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