Don’t let Iran sanctions derail US-China engagement

The United States’ stalled war on Iran continues to loom large in its relations with China. In March, President Donald Trump delayed a state visit to Beijing until May to manage developments in the Iran conflict. Now, ahead of President Xi Jinping’s scheduled state visit to Washington on September 24, the Iran issue has again reared its head as the US tries to extract itself from a quagmire of its own making. Washington has widened US sanctions targeting dealings with Iran in what it described as an “economic D-Day” aimed at isolating the country from the global economy, following six months of conflict.

This comes in the wake of failed peace talks and a US naval blockade, which was lifted after the parties reached a memorandum of understanding and reimposed after alleged Iranian attacks on commercial shipping. The two exchanged a round of military strikes over the weekend.

Announcing the new measures, including sanctions on 60 entities around the world, US Treasury Secretary Scott Bessent said any nation financially partnering Iran would be isolated, along with banks and businesses that refused to cut ties. Whether the measures are effective depends on the reaction from Iran’s trading partners. They include China, the biggest buyer of Iranian oil. The measures target mainland Chinese and Hong Kong-based procurement, financial and shipping intermediaries. But none of them are major banks or refineries.