LAST UPDATE | 25 Aug

CHINA HAS RESPONDED to the US threat to punish countries that have economic ties with Iran, saying it is opposed to “illegal unilateral sanctions”.

On Monday, US Treasury secretary Scott Bessent laid out plans for the “economic asphyxiation” of Iran, expanding Washington’s secondary sanctions threats and warning of dire consequences for countries that do not join the campaign.

Iran has already been under US sanctions for decades and the Trump administration has been grasping to find more leverage over the Islamic Republic since it launched a war against the country alongside Israel almost six months ago. 

“Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent told journalists on Monday.

“We are going to hold everyone accountable, and this is economic asphyxiation of this regime.”

Speaking to reporters at a regular press briefing today, China’s foreign ministry spokesperson Lin Jian said Beijing “has already stated many times that it firmly opposes illegal unilateral sanctions.

“China will take all necessary measures to firmly safeguard its own rights and interests.” 

Jian said that cooperation between China and Iran “has always been conducted within the framework of international law and should not be interfered with or disrupted”.

Bessent said the US was declaring an “economic D-Day” on Tehran, but his announcement named no specific countries beyond Iran and gave no timelines.

Scott Bessent, the secretary of the US Treasury Alamy Stock Photo Alamy Stock Photo

China buys more than 80% of Iran’s oil exports. Iran also has trading relationships with Russia, Turkey and the United Arab Emirates, although the UAE said it was severing its economic ties with Iran last week. 

Asked on Monday if Chinese banks would be targeted by the new sanctions, Bessent said “no one is above the reach of US sanctions.”

“Around the globe, our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone,” Bessent told journalists.

“We are going to hold everyone accountable, and this is economic asphyxiation of this regime.”

He added that countries not joining US sanctions would “share in the isolation” of Iran, and noted that president Donald Trump was making phone calls to world leaders with requests to stop interactions with Tehran.

The Treasury Department said expanded secondary sanctions would target Iran’s digital assets, technology, gold, aviation and shipping sectors.

It also issued new sanctions against 60 individuals, companies and vessels that allegedly aid Iran in oil revenue generation, weapons procurement and cyber operations.

Bessent vowed that any entity “that facilitates money laundering on behalf of Iran will be removed from the US dollar system.”

Iran had been dismissive of the threat of additional sanctions, and on Monday its economy minister predicted “another defeat” for Washington on the economic front.

“We’ve been waiting for these plans for a long time, and the government is and was ready and has a two-year plan to manage these events,” said Ali Madanizadeh.

In a post before the announcement, deputy foreign minister Kazem Gharibabadi said the latest US threats were an admission of military defeat.

Gharibabadi asked why, if Washington had achieved its goals, “there is a need for ‘the largest financial invasion in history’ and the mobilisation of ‘all institutions and powers’ of the United States!

“Is this a victory or an admission of America’s defeat?”

With reporting from AFP