China has issued a firm warning of retaliatory action against any significant expansion of U.S. secondary sanctions targeting its companies, as Beijing pushes back against Washington’s latest punitive measures on Hong Kong-based entities involved in Iran-related trade, while urging de-escalation and a return to diplomatic negotiations.
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China has issued a stark warning that it will take “all necessary measures” to safeguard its legitimate rights and interests should the United States expand secondary sanctions targeting Chinese companies, escalating tensions between the world’s two largest economies .
The warning follows the U.S. Treasury Department’s announcement of fresh sanctions against dozens of entities, individuals, and vessels linked to Iran-related trade, including firms based in mainland China and Hong Kong, according to the Financial Times. While major Chinese financial institutions were spared in the latest round, Beijing has made clear its opposition to unlawful unilateral sanctions .
Chinese Foreign Ministry spokesperson Lin Jian reiterated Beijing’s stance at a regular press conference on Monday, emphasizing that sanctions and pressure do not help resolve issues but rather exacerbate tensions and destabilize the global economy .
“China firmly opposes illegal unilateral sanctions,” Lin said, adding that the country will closely monitor the situation and take necessary measures to protect its legitimate interests . He called on all parties to exercise restraint and return to dialogue and negotiation as the proper path toward political resolution .
The U.S. Treasury’s “Operation Economic Outcast” aims to economically isolate Iran, imposing sanctions on approximately 60 targets across sectors including digital assets, technology, gold, aviation, and shipping . The measures include a grace period for countries to sever ties with Tehran or risk facing secondary sanctions.
While China has not detailed specific countermeasures, officials have stated that all options remain on the table to protect the country’s economic interests .
