Trump's Economic War on Iran Faces China Conundrum Ahead of Xi Visit
US President Donald Trump's plan to impose economic sanctions on countries that continue to do business with Iran may face significant challenges, particularly in getting China on board. The US Treasury Secretary Scott Bessent unveiled 'Operation Economic Outcast', a threat to impose damaging new sanctions on countries refusing to stop trading with Iran.
China has been a critical economic lifeline for Tehran, buying up the vast majority of its oil exports worth tens of billions of dollars last year. However, Beijing flatly rejects what it calls 'unilateral' US sanctions and has long defended its right to regular trade with partners like Iran and Russia.
Analysts suggest limited space for Washington's demands, as China is unlikely to accept a situation where the US determines Chinese companies can legally trade with third countries. The US can apply pressure on major Chinese state-owned entities by sanctioning their subsidiaries, but Beijing would likely respond if Washington crosses this threshold.