US Threatens to Cut Off Chinese Banks from Financial System Over Iran Sanctions

The US has threatened to cut off Chinese banks from its financial system if they help Iran evade sanctions, putting Beijing in a difficult position. The warning comes as part of President Donald Trump's expanded economic campaign against Iran.

US Treasury Secretary Scott Bessent said that any entity facilitating 'money laundering or sanctions evasion on behalf of Iran risks being cut off from the US financial system'. He specifically warned Chinese banks could be targeted if they facilitate transactions that help convert Iranian oil revenues into funds for the country's military activities.

China responded by saying it would take 'all necessary measures' to protect its interests. Analysts say China is unlikely to abandon the US dollar-based financial system because its banks and wider economy remain heavily dependent on access to dollar financing and global payment networks.