US Economic Campaign Against Iran Complicated by Chinese Ties
The US Treasury Department has launched an economic campaign against Iran's financial connections worldwide, but this effort may face significant challenges from China.
Beijing is Iran's largest trading partner and main oil buyer, making it a crucial player in the new sanctions regime. The Trump administration's goal is to isolate Iran economically, but this could be complicated by its fragile trade truce with China, which President Donald Trump plans to host next month for a state visit.
Experts say that Washington will need to balance applying maximum pressure on Iran with avoiding further tensions with China, which could harm the American economy. 'The real question is whether there's room to push the Chinese to reduce what they're doing with Iran without leading them to say this is unreasonable and we won't comply,' said Edgard Kagan, senior adviser at the Center for Strategic and International Studies.
China has stated that its cooperation with Iran is within international law, but Beijing is likely to take a cautious approach, 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 Kagan.