The Trump administration’s threat to inflict secondary sanctions on countries engaging with Iran has prompted outrage in Beijing.
On Monday, Treasury Secretary Scott Bessent unveiled “Operation Economic Outcast,” a campaign to isolate Iran from the global financial system. Such a shake-up comes as peace talks have ground to a halt, almost six months into the conflict.
Donald Trump speaking with supporters at a campaign rally at the Prescott Valley Event Center in Prescott Valley, Arizona. Image Credit: Gage Skidmore.
Donald Trump Back in 2016. Image Credit: Creative Commons.
Washington’s ‘Economic Onslaught’
“We are launching an economic onslaught against Iran’s financial connections around the globe,” Bessent said. He added that Washington’s mission was to “sever every economic lifeline” aiding Iran.
The latest sanctions reportedly included about 60 people, firms, and ships linked to Iranian fuel revenue, military procurement, and cyber activities.
China Slams Sanctions
Kpler ship-tracking statistics suggest Beijing’s purchases of Iranian oil averaged about 1.4 million barrels per day last year.
The ongoing U.S. blockade of Iranian ports is already squeezing such trade. Chinese intake is estimated to have plunged from 823,000 barrels per day in July to some 534,000 barrels per day so far in August.
Foreign Ministry spokesman Lin Jian has slammed the plans, stressing that China “firmly opposes illegal unilateral sanctions.” He also said it will adopt “all necessary measures” to defend its own interests.
“Cooperation between China and Iran has always been conducted within the framework of international law and should not be interfered with or disrupted,” he explained.
A report published by the U.S.-China Economic and Security Review Commission (USCC) in March found that China buys more than 90% of Iran’s total crude exports. This trade was worth some $31.2 billion to Tehran in 2025.
These ties make China a valuable partner for Iran and, therefore, a hurdle for Washington.
In an opinion piece published by The New York Times on Tuesday, Michal Meidan, head of China energy research at the Oxford Institute for Energy Studies, said the war had vindicated China’s long-term energy-security planning.
Over 70% of the oil China consumes and around half of those imports come from the Middle East.
Still, Meidan referred to the war as “a welcome revelation for China.”
For decades before this conflict, China worked to diversify suppliers, accumulate vast crude stockpiles, and create the world’s largest electric-vehicle market.
Its electricity generation now mostly relies on domestic sources such as coal, nuclear power, hydropower, wind, and solar.
Could China Survive an Oil Cutoff?
The USCC cited one estimate that Beijing could fulfill its key oil demands for up to four years, even if it was totally cut off from seaborne imports, provided the government rolled out aggressive rationing and ramped up overland pipeline use.
Certain independent “teapot” Chinese refiners are already looking elsewhere to secure what they need. Reuters has revealed that one firm bought Brazilian Lapa crude this week, while others are considering importing Iraqi oil.
Still, China has absorbed the oil shock broadly well. The Wall Street Journal recently reported that Chinese crude imports fell from around 11 million barrels per day in February to some 5.8 million in June without prompting a comparable economic crisis. Beijing’s colossal electric-vehicle fleet reduced the economy’s dependence on gasoline.
‘Limited Impact’
David Oxley, a chief economist at Capital Economics, told the BBC that he doubted the current sanctions would have a dramatic impact.
He told the British broadcaster that, “with the renewed US naval blockade already strangling Iran’s oil exports, the direct impact of ‘economic D-Day’ on Iran’s energy revenues will be somewhat of a damp squib.”
“We suspect that the new package will have only a limited direct impact on Iranian energy flows in the short term,” he went on.
China has helped the Iranian regime evade the impact of sanctions for years. A November 2025 paper from the USCC found that 366 firms based in China or Hong Kong had been sanctioned for their ties to Iran-related programs, including military ones.
About the Author: Georgia Gilholy
Georgia Gilholy is a journalist based in the United Kingdom who has been published in Newsweek, The Times of Israel, and the Spectator. Gilholy writes about international politics, culture, and education.
