China pushed back on what it called "illegal unilateral sanctions" after the US announced new measures earlier this week to cut off all potential sources of revenue to Iran.
US Treasury Secretary Scott Bessent on Monday described the sanctions package as an "economic D-Day" against Tehran, and warned any economic engagement with the regime would "expose those responsible to the full reach" of US power.
China is Iran's top trade partner and provides a lifeline to Tehran mainly through oil purchases, but also with banking, technology and dual use goods, which can be used both for civilian and military purposes.
When asked about if Chinese banks would be included in the new measures, Bessent warned "no one was above the reach of US sanctions."
But with US President Donald Trump due to meet his Chinese counterpart Xi Jinping in September, Washington will need to be careful with any moves affecting China-Iran trade ties.
