China warns US of retaliation over expansion of Iran sanctions

China on Tuesday warned the US that it could retaliate if Washington expands its sanctions campaign against Iran to target Chinese companies, potentially opening a new front in tensions between the world’s two largest economies. The warning came after US Treasury Secretary Scott Bessent on Monday announced measures aimed at further isolating Iran and threatening countries that continue to trade with Tehran with exclusion from the dollar-based financial system. The Financial Times reported that Beijing had warned against any significant extension of secondary sanctions to Chinese businesses, with a foreign ministry spokesperson saying that China would take “all necessary measures” to protect its interests. The spokesperson reiterated Beijing’s opposition to unilateral sanctions imposed without UN Security Council authorisation, while calling for de-escalation and a return to negotiations over the US-Iran conflict, according to the FT. Washington’s latest package sanctioned 60 individuals, companies and vessels, including entities in mainland China and Hong Kong. But it stopped short of targeting major Chinese banks suspected of facilitating Iranian oil trade. Asked about Chinese financial institutions on Monday, Bessent said nobody was beyond the reach of US sanctions, although he did not specify which countries or institutions could face further measures or when they might be imposed. The prospect of sanctions against major Chinese companies is particularly sensitive because China has for years been the biggest buyer of Iranian crude. Read more: China warns US of retaliation over expansion of Iran sanctions US President Donald Trump shakes hands with China's President Xi Jinping in Beijing, 15 May 2026 (Reuters)