China refuses U.S. pressure on Iran oil trade, warns of retaliation
China has told the United States it will not halt oil purchases from Iran despite new American sanctions, and it warns of counter-measures if Chinese firms are targeted.
After six months of conflict, the United States has escalated secondary sanctions against entities it accuses of aiding Iran’s oil earnings, yet China has refused to end its oil purchases from Tehran. Chinese officials stress that Iran remains a key oil buyer and that cutting trade would only give China leverage to acquire oil at lower prices. They also claim the sanctions lack a basis in international law or a UN Security Council mandate, and have warned of retaliation if Chinese companies are hit.
Experts say the dispute could widen the existing trade tensions between the two largest economies, especially ahead of a planned meeting between Donald Trump and Xi Jinping. The United States has previously targeted Chinese banks but has so far avoided the biggest lenders, while China has responded in the past with reciprocal measures on rare-earth exports. Both sides appear cautious, fearing escalation could harm their own economies.
Why it matters
China's defiance could deepen U.S.-China trade tensions and affect global oil and rare-earth markets.
In this story
