Trump's Economic Squeeze on Iran Faces Unexpected Challenge from China

The Trump administration's latest economic squeeze on Iran may face an unexpected challenge: China. As the US tries to isolate Iran from its remaining economic partners, Beijing remains Tehran's biggest trading partner and leading oil buyer.

Treasury Secretary Scott Bessent declared an 'economic onslaught' against Iran's financial connections worldwide, but specifics about targeting China were absent from his remarks. This has raised doubts about the effectiveness of the new campaign, as the US must balance maximum pressure on Iran with avoiding higher tensions with China that could be costly to the American economy.

'The announcement yesterday was very careful in my view to avoid specifics (against China), which could have led to a disruption in the summit,' said Edgard Kagan, senior adviser and Freeman Chair in China studies at the Center for Strategic and International Studies. 'For Xi, a state visit to Washington is a big deal; and for Trump, hosting it is a big deal.'

China has responded to 'Operation Economic Outcast' by saying its cooperation with Iran has always been 'within the framework of international law.' Beijing receives more than 80% of Iranian oil shipments but usually through indirect channels. Lin Jian, a spokesperson for the Chinese foreign ministry, said China-Iran cooperation 'should not be disrupted or undermined.'

Kagan described Beijing's remarks as 'a holding response' and said Beijing will try to do the least to comply without openly confronting the US. He noted that China has tended to be careful not crossing explicit red lines but hasn't addressed the spirit of what the US has sought.