US Treasury Secretary Scott Bessent has declared an "economic D-Day" against Iran, aiming to cut off all economic lifelines to the country. This aggressive stance is set to include targeting China, Iran's largest trade partner, which accounted for $9.96 billion in two-way trade in 2025 and $31.2 billion in Iranian oil shipments, representing about 90% of Iran's oil sales. Bessent warned that any country maintaining ties with Iran risks "economic oblivion" and called on nations to choose sides, explicitly urging China to support Washington's efforts to isolate Iran.
This move puts the US-China relationship at risk, especially ahead of a scheduled summit between President Trump and President Xi Jinping in September. While the Trump administration has previously sanctioned some minor Chinese entities for dealings with Iran, such as Hengli Petrochemical and several shipping lines, it has largely avoided targeting major Chinese financial institutions. Analysts like Brett Erickson from Obsidian Risk Advisors believe that directly confronting China would signal a prolonged economic offensive, but also noted that China would likely retaliate, as Beijing has consistently opposed US sanctions against Iran and has the leverage to impose costs on the US.
China has reaffirmed its commitment to diplomatic solutions for the US-Iran war, with Vice Foreign Minister Miao Deyu stating that Beijing is actively promoting peace talks. Iranian officials, including Mohsen Rezaei, have threatened retaliation against any country participating in US sanctions. Experts suggest that China, while desiring to avoid conflict, would implement countermeasures depending on the severity of US actions, making it unlikely for Beijing to simply stand by while the US exerts economic pressure. Despite the US aim to "collapse" Iran's government, analysts express skepticism that economic pressure alone, without fully engaging China, can achieve Washington's war goals.
