China warns US not to interfere with Iran trade: What to know

China warns US not to interfere with Iran trade as sanctions escalate

China has criticized US sanctions on Iran and threats of penalties for Tehran's economic partners, vowing to protect its interests and warning Washington not to "interfere" with its trade with Iran.

Foreign Ministry spokesperson Lin Jian said in a Tuesday news briefing that China was firmly opposed to what it called "illegal unilateral sanctions" and would take "all necessary measures" to safeguard its rights. "Cooperation between China and Iran has always been conducted within the framework of international law and should not be interfered with or disrupted," Lin said.

Lin reiterated Beijing's opposition to unilateral sanctions, adding: "China will take all necessary measures to firmly safeguard its own rights and interests." He warned that an economic war would not help resolve the Iran conflict. "They will only further intensify contradictions and conflicts, cause risks to spill over, disrupt the global economic and financial order and harm the legitimate rights and interests of other countries," he said.

A US blockade on Iranian ports since April has drastically decreased oil flows; exports to China fell to 785,000 barrels per day in June, the lowest since February 2023, according to Kpler tanker-tracking data.

The announcement comes as the US Treasury Department unveiled a package targeting dozens of individuals and entities under "Operation Economic Outcast," a campaign aimed at severing Iran's remaining financial lifelines. The designations included 60 individuals, entities and vessels, but did not include the Chinese institutions Washington suspects are facilitating Tehran's oil trade.

The US avoided targeting major Chinese financial institutions despite including Hong Kong-based entities, Sectors in Washington appear to be seeking to raise costs for China without triggering broader economic confrontation. Treasury Secretary Scott Bessent described the initial measures as a "warning shot," adding that he did not want to "blow up the global financial system" when asked why the measures were not more severe. In response to a question about Chinese banks, Bessent said "no one is above the reach of US sanctions."

The sanctions were announced ahead of the expected meeting between President Trump and Chinese President Xi Jinping in Washington next month, with trade and critical minerals expected to feature.

For Iran, the widening pressure has sent the rial to a record low of 2.02 million to the dollar on Monday. Iranian Economy Minister Ali Madanizadeh told state television that "the enemies should wait for an attack," and predicted that neither China nor Russia had "accepted" the secondary sanctions, and that other countries would resist them.

Strategic Reconciliation: China-Iran trade

China is Iran's most important trade partner ahead of its oil, taking more than 90% of Iranian shipments, mostly via shadow fleets. In 2025, China was Iran's second-largest trading partner, behind the UAE, which has said it cut all economic ties with Tehran after accusing it of firing ballistic missiles at its territory.

China's response comes as Beijing emphasizes its framework-that its trade with Iran is conducted within international law, and that Washington's interference risks economic order. Lin Jian reiterated that the most urgent task is to de-escalate tensions and return to negotiations.

Conflict escalation and additional dynamics

Al-Monitor reported that Tehran has vowed to resist the widening sanctions, with the Iranian economy minister's statement being broadcast on state television. He said "the enemies should wait for an attack," also predicting that other countries would resist secondary sanctions. The outlet cited official remarks as notable for their aggressive rhetoric against the backdrop of the US measures.

Financial Post reported that Beijing threatened to retaliate against the United States and signalled it would not back away from its cooperation with Iran. The outlet described the sanctions as targeting businesses in China and Hong Kong.

While China's foreign ministry has firmly criticized the sanctions, the Financial Post noted that US avoided major Chinese financial institutions and this suggests a cautious approach by the Trump administration.