Beijing has pledged to retaliate against the United States' expanded sanctions on Iran that include Chinese entities, potentially destabilizing the recent calm in US-China relations ahead of President Xi Jinping's scheduled visit to Washington next month.

On Monday, the US announced fresh sanctions against Iran and its trading partners, including companies in mainland China and Hong Kong, aiming to economically pressure Iran amid ongoing conflict unresolved by military and diplomatic efforts.

Chinese Foreign Ministry spokesman Lin Jian dismissed the sanctions on Tuesday as “illicit” and lacking “any basis in international law,” warning that the US move would escalate tensions and disrupt the global economic and financial order. He stated, “Economic warfare and maximum pressure provide no solution. China’s cooperation with Iran is conducted within the framework of international law, thus should not be disrupted.”

Sun Chenghao, a fellow at Tsinghua University’s Centre for International Security and Strategy, noted that it remains unclear whether the sanctions will directly impact Xi’s meeting with US President Donald Trump. However, he described the sanctions as “becoming a new risk point” ahead of the summit. He added, “The key may lie in whether the US expands secondary sanctions to major Chinese banks. If it’s limited to individual companies and intermediaries, both sides may still be able to keep the disagreement contained. But if it touches China’s core financial institutions, the situation could become quite different.”

Observers suggest that ongoing dialogues, such as this week’s Track 1.5 talks, might help manage tensions and foster mutual understanding between the two powers.

Xi Jinping’s upcoming visit to Washington will be his first state visit to the US in over a decade, underscoring the significance of the diplomatic environment amid these developments.

Sources

South China Morning Post World