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Trump's Iran Sanctions Plan Hits Roadblock with China

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The Trump administration's new economic campaign against Iran has a significant challenge: China. As Treasury Secretary Scott Bessent declared an 'economic onslaught' on Iran's financial connections worldwide, Beijing remains Iran's largest trading partner and its leading oil buyer.

While the US is trying to isolate Iran from its remaining economic partners, President Donald Trump must balance putting maximum pressure on Iran with avoiding higher tensions with China that could be costly to the American economy. The Trump administration has refrained from imposing sanctions on major Chinese businesses or banks connected to the US financial system.

Experts say China will likely wait and see how the situation develops, doing the minimum to comply without openly confronting the US. 'They've tended to be careful not crossing explicit red lines, but they haven't addressed the spirit of what the US has sought,' said Edgard Kagan, senior adviser and Freeman Chair in China studies at the Center for Strategic and International Studies.

The planned summit between Trump and Chinese leader Xi Jinping next month may play a crucial role in determining how China responds to the new campaign. 'Neither side wishes to have a major escalation bilaterally at this point,' said Sun Yun, director of the China program at the Stimson Center. 'China needs to give US something, and US needs to understand and accept that it is not going to be everything US asks for.'

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