China's Iran Oil Deals Defy US Sanctions

China's economic influence in Iran has been on full display as the country continues to buy nearly all of Iran's oil exports, settling transactions in renminbi and using shell companies to evade US sanctions.

This move is not a defiant gesture but rather a demonstration of how far American economic reach actually extends. According to Scott Bessent, who launched Operation Economic Outcast last week, no one would be above the reach of US sanctions, but China's foreign ministry responded by saying Beijing would do everything necessary to safeguard its own rights and interests.

China has been methodically demonstrating that the threat of American secondary sanctions cannot force a country like China to change its economic behavior. The architecture of Chinese-Iranian trade has been designed to sit outside dollar-system jurisdiction, with Chinese banks and companies settling transactions in renminbi or through barter arrangements.