US Sanctions on Iran Test China's Economic Ties
China and Iran's economic relationship has come under scrutiny as the US imposed new sanctions on Tehran, targeting entities involved in illicit nuclear and missile technology procurement.
The move, described by US Treasury Secretary Scott Bessent as an 'economic D-Day' against Iran, aims to cut off all potential sources of revenue to the country.
China is Iran's top trade partner, providing a lifeline to Tehran mainly through oil purchases, but also with banking, technology, and dual-use goods.
The initial sanctions package stops short of targeting major Chinese banks, instead focusing on 60 smaller entities, individuals, and vessels in mainland China and Hong Kong.
China's big banks are still safe, for now, as the US seeks to balance its pressure on Iran with its relationship with China ahead of a key summit between President Donald Trump and Chinese leader Xi Jinping in September.