China has threatened the U.S. with retaliation for sanctions against companies that trade with Iran
Beijing has stated that it will take countermeasures in response to the expansion of U.S. secondary sanctions against Chinese companies that do business with Iran.
Chinese Foreign Ministry spokesperson Lin Jian said that Beijing will protect the interests of its companies.
“China will do whatever is necessary to resolutely defend its rights and interests,” he said.
The Chinese diplomat called the U.S. restrictions illegal unilateral sanctions that lack the authorization of the UN Security Council.
The day before, the U.S. Treasury Department announced a new package of economic pressure measures against Iran. Sanctions were imposed on nearly 60 individuals, companies, and vessels.
The sanctions list includes participants in Iranian oil networks in mainland China and Hong Kong. At the same time, Washington did not impose restrictions on major Chinese banks.
According to the Financial Times, China is the main buyer of Iranian oil, accounting for about 90% of its purchases.
State-owned Chinese oil refiners are largely complying with U.S. restrictions. At the same time, a significant portion of Iranian oil is purchased by private refineries, known as “teapots.”
The U.S. has already imposed sanctions against some of these companies. Following this, Beijing called on Chinese companies not to comply with the U.S. restrictions.
Further expansion of secondary sanctions could trigger a new escalation between the U.S. and China just one month before the planned meeting between Presidents Donald Trump and Xi Jinping.
The two leaders are expected to discuss extending the one-year truce in the trade war.
In response, Beijing could employ its own system of counter-sanctions or restrict the supply of critical minerals needed for U.S. high-tech manufacturing.
Wang Dong, a senior research fellow at Peking University, noted that it is currently unclear whether Washington is truly prepared to extend secondary sanctions to China.
According to him, should such a decision be made, Beijing will defend its own interests, as it did during the previous trade standoff between the two countries.
The Financial Times reports on this.
Iran has stated that it is prepared to respond to expanded U.S. sanctions targeting 60 individuals, entities, and vessels linked to the country. Economy Minister Ali Madanizadeh stated that Tehran has its own tools to respond to U.S. pressure.
The U.S. Department of the Treasury, through the Office of Foreign Assets Control (OFAC), expanded sanctions related to Iran, adding 22 individuals and 48 entities to the list. The restrictions target representatives and companies linked, in particular, to China, Turkey, India, and the UAE.
