China on Tuesday signaled it would not end its ties and trade relations with Iran following the U.S. sanctions unveiled on Monday that target Chinese and Hong Kong entities for helping Iran do business.
On Monday, the U.S. Administration announced a series of new sanctions against individuals and entities linked with Iranian trade and economy, including the shipping and oil industry.
However, “Operation Economic Outcast,” launched by Treasury Secretary Scott Bessent, stopped short of sanctioning any Chinese banks.
The oil trade remains one of the U.S. sanctions campaign’s primary targets. Monday’s designations include brokers, companies, and shadow-fleet vessels operating across the UAE, Hong Kong, China, Singapore, Switzerland, and Europe that transport Iranian oil and channel revenues to Iranian entities. OFAC also sanctioned international companies operating in Iran’s petroleum sector and facilitating the movement and sale of Iranian crude and petroleum products.
In the first official and public reaction to the ‘Economic D-Day’, Lin Jian, spokesperson for the Chinese Foreign Ministry, said at a regular press conference on Tuesday that “China has made clear on many occasions its firm opposition to illicit unilateral sanctions that have no basis in international law or the authorization of the UN Security Council. Economic warfare and maximum pressure provide no solution.”
Such moves by the U.S. “only serve to fuel tensions and lead to risk spillover, which will disrupt the global economic and financial order, and harm the legitimate rights and interests of other countries,” the spokesperson added.
“China will do everything necessary to firmly safeguard its rights and interests,” he said on several occasions, hinting that China could retaliate against the U.S. if sanctions further expand.
Asked if China would be willing to change some of its behaviors and interactions with Iran to comply with U.S. demands, the official said that “China’s cooperation with Iran is conducted within the framework of international law, thus should not be disrupted. China is closely following the developments, and will do everything necessary to firmly safeguard its rights and interests.”
By Charles Kennedy for Oilprice.com
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