China Warns It Will Take 'All Necessary Measures' Against US Over Fresh Iran Sanctions

China has warned it will take "all necessary measures" to protect its rights and interests after the United States launched a sweeping new sanctions campaign aimed at cutting Iran off from its trading partners.

Foreign Ministry spokesperson Lin Jian said on Tuesday that China's ties with Iran "should not be interfered with or undermined", hours after Washington vowed to target countries that refuse to cut economic links with Tehran.

Beijing's Warning

Speaking at a press conference in Beijing, Lin said China 'is closely monitoring relevant developments and will take all necessary measures to firmly safeguard its own rights and interests'.

He called for dialogue rather than what he described as 'economic warfare', warning that sanctions would 'escalate tensions, create spillover risks, and disrupt the global economic and financial order'.

The Sanctions Behind the Warning

The warning followed Treasury Secretary Scott Bessent's launch of 'Operation Economic Outcast' on Monday, a campaign intended to isolate Iran from the global financial system entirely. Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone, Bessent said.

The plan could involve secondary sanctions on countries that trade with, invest in, or lend to Iran. Asked whether China itself could be targeted, Bessent did not rule it out. No one is above the reach of US sanctions, he said. If they facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they will be targeted.

The Treasury has already named a cluster of Hong Kong-based trading and shipping firms as sanctions targets, alleging some were involved in procuring sensitive technology for Tehran.

The Treasury has also designated close to 60 individuals, entities, and vessels accused of helping Iran evade existing sanctions, with designations spanning businesses in China, the United Arab Emirates, Singapore, Turkey, and Greece. Separately, Bessent said a further announcement targeting a major financial institution is expected within the week.

The Trade Truce at Risk

China's network of smaller domestic refineries, known as 'teapots', bought around 80 per cent of Iran's seaborne crude exports last year. Beijing and Tehran describe their relationship as a 'comprehensive strategic partnership', with roughly $40bn in two-way trade last year, though that oil trade has slowed since the Strait of Hormuz closed.

The clash lands at a delicate moment for US-China relations more broadly. President Donald Trump made a fence-mending visit to Beijing in May after Xi Jinping restricted America's access to Chinese-produced rare earths and magnets, and Xi is expected to travel to Washington next month.

Bloomberg has separately reported that Trump is considering a new 7.5% 'overcapacity' tariff on Chinese-made goods, adding further strain just as both governments try to avoid reopening their trade war.

Washington has taken this approach before. When Trump threatened secondary sanctions on buyers of Russian oil last year, the resulting tariffs fell on India, while China was spared.

Beijing has also strengthened its own defenses since Trump returned to office, granting enforcement agencies new powers to punish businesses that comply with sanctions it deems contrary to Chinese interests.

So far, the initial round of sanctions has stopped short of targeting China's largest banks, the institutions that allow Iran to bypass the wider Western financial blockade.

Whether that restraint holds, and whether Washington's promised sanctions on a major financial institution end up reaching one of those banks, could shape the tone of Xi's visit to Washington next month.