China Threatens Retaliation Over U.S. Sanctions on Iranian Oil Trades

Beijing has threatened to retaliate against the U.S. over sanctions imposed on Chinese companies that trade with Iran. According to Lin Jian, a spokesperson for the Chinese Foreign Ministry, China will 'do whatever is necessary' to defend its interests and rights. The statement comes after the U.S. Treasury Department announced new economic pressure measures against Iran, including sanctions on nearly 60 individuals, companies, and vessels.

The list includes participants in Iranian oil networks in mainland China and Hong Kong, with China being the main buyer of Iranian oil, accounting for about 90% of its purchases. However, state-owned Chinese oil refiners are largely complying with U.S. restrictions, while private refineries, known as 'teapots,' continue to purchase significant amounts of Iranian oil.

The expansion of secondary sanctions could lead to a new escalation between the U.S. and China, just one month before the planned meeting between Presidents Donald Trump and Xi Jinping to discuss extending the one-year truce in the trade war.