China Warns US of Retaliation Over Iran Sanctions

China has stated it will "take all necessary measures" to retaliate against the United States if any of its companies are affected by new secondary sanctions targeting Iran. This warning follows the announcement of "Operation Economic Outcast" by Treasury Secretary Scott Bessent, which aims to further isolate Iran economically. While the US has targeted various entities, it has not included major Chinese financial institutions. Chinese Foreign Ministry spokesman Lin Jian emphasized that China will protect its economic interests, stating, "China will take all necessary measures to firmly safeguard its rights and interests." He reiterated China's opposition to unilateral sanctions that lack international law backing or UN Security Council authorization. China is Iran's largest trading partner, and although state-owned refiners generally comply with Western sanctions, private Chinese companies continue to engage in business with Iran. Lin also called for an end to the conflict and the reopening of the Strait of Hormuz. Bessent described the US sanctions as "the single greatest financial offensive ever" against Iran, asserting that "no one is above the reach of US sanctions." The tensions surrounding these sanctions may complicate US-China relations ahead of an upcoming summit between President Trump and China's Xi Jinping. Additionally, Iran has warned that the US's economic actions could lead to retaliatory attacks on military and financial targets in the region, as stated by Majidreza Hariri, head of the Iran-China Chamber of Commerce and Industries.