China has directed domestic companies to disregard US sanctions targeting Iranian oil imports, escalating tensions with Washington and setting up a direct challenge to the Trump administration’s pressure campaign against Tehran.
China’s Commerce Ministry, according to Fox News, issued a directive on Sunday invoking a 2021 “blocking statute” that bars Chinese firms from complying with foreign sanctions Beijing considers illegitimate. The order reportedly applies to several Chinese refiners accused by the United States of purchasing Iranian crude, including independent “teapot” refineries.
Trump administration ramps up pressure
The development comes as the Trump administration intensifies sanctions aimed at cutting off a major source of Iranian revenue.
US Treasury Secretary Scott Bessent accused China of effectively financing Iran’s military activities through large-scale oil purchases.
Speaking in an interview on Fox News, Bessent said: “China, let’s see them step up with some diplomacy and get the Iranians to open the strait.”
He added: “Iran is the largest state sponsor of terrorism … China has been buying 90 percent of their energy, so they are funding the largest state sponsor of terrorism.”
Bessent has repeatedly defended the administration’s “maximum pressure” campaign against Iran, saying the US is “suffocating” Tehran through financial restrictions and naval enforcement measures.
China remains key buyer of Iranian crude
China continues to be the primary destination for Iranian oil exports despite mounting US sanctions.
Much of Iran’s sanctioned crude reportedly reaches Chinese refiners through indirect shipping channels and complex maritime networks designed to avoid detection.
Beijing defended its latest action by arguing that US sanctions unlawfully interfere with normal trade between sovereign nations.
China’s Commerce Ministry said the American measures violate international norms and confirmed that Chinese firms were prohibited from recognizing or complying with the sanctions.
Diplomatic tensions rise ahead of Trump-Xi meeting
The dispute is unfolding ahead of a highly anticipated meeting later this month between President Donald Trump and Chinese President Xi Jinping.
Meanwhile, Iranian Foreign Minister Abbas Araghchi arrived in Beijing this week for talks with Chinese Foreign Minister Wang Yi, highlighting China’s growing role as both Iran’s leading oil customer and a major diplomatic partner.
