US Economic Squeeze on Iran Complicated by Chinese Ties

The Trump administration's economic squeeze on Iran may face a significant challenge due to its major trading partner, China. Treasury Secretary Scott Bessent declared an 'economic onslaught' on Iran's financial connections worldwide.

However, the U.S. 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 been careful not to specify how it would target China in its new campaign.

China is likely to wait and see what happens before taking any significant action, according to Edgard Kagan, a senior adviser at the Center for Strategic and International Studies. 'They've tended to be careful not crossing explicit red lines, but they haven't addressed the spirit of what the U.S. has sought,' he said.

The Trump administration has penalized nearly 60 Iran-linked entities, accusing them of involvement in Iran's nuclear and missile programs, cyber activities, and oil shipments. However, it has refrained from imposing sanctions on major Chinese businesses or banks connected to the U.S. financial system.