Iran sanctions need unlikely China help, analysts say

A successful US effort to isolate Iran economically would require cooperation from China that analysts said appears unlikely, as Beijing defends its trade with Tehran and resists US pressure.

Washington this week laid out plans to expand sanctions against Iran during the Middle East war, warning that countries that continue to enable Tehran could face consequences. US Treasury Secretary Scott Bessent told Beijing to “get with the programme”, while China said its cooperation with Iran was within international law and should not be disrupted.

Dylan Loh of Singapore's Nanyang Technological University said cutting off Iran “would certainly require China's help”. He said Beijing is a key customer for Iranian oil and that a significant amount of Iran's trade uses the Chinese renminbi, which can fall outside the reach of US sanctions.

Nino Lezhava of the Center for European Policy Analysis said oil was the central economic lever. She said maintaining commercial channels and alternative payment mechanisms could reduce the effectiveness of economic isolation.

The United States has already targeted some Chinese entities accused of helping Tehran procure critical technology, but it has not sanctioned major Chinese financial institutions. Bessent has said no one is above the reach of US sanctions when asked about Chinese banks that do business with Iran.

China's foreign ministry said Tuesday that its cooperation with Iran had “always been conducted within the framework of international law”. Sun Degang of Shanghai's Fudan University said China would safeguard what he called its economic sovereignty.

The dispute could further strain US-China relations before an expected September visit by Chinese President Xi Jinping to Washington.