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By Aurax Radio | August 26, 2026 | 2 min read
China has rejected the Trump administration’s campaign to economically isolate Iran, warning that Beijing will protect its interests as Washington expands sanctions targeting Tehran and its international trading partners. The dispute puts China at the center of U.S. efforts to squeeze Iran, as Beijing remains Tehran’s largest trading partner and a major buyer of its oil.
A Chinese oil tanker transits the Strait of Hormuz as Beijing pushes back against expanded U.S. sanctions targeting Iran.
Chinese officials have criticized the new U.S. sanctions as unilateral measures and said China’s economic cooperation with Iran is legitimate. Beijing has also indicated that it will take steps to protect Chinese companies and national interests if they are affected by Washington’s secondary sanctions. The Trump administration has threatened penalties against countries and businesses that continue economic dealings with Iran as part of a broader campaign to restrict Tehran’s access to international finance and oil revenues.
The confrontation presents a challenge for Washington because China is a major outlet for Iranian oil and has maintained commercial ties with Tehran despite previous U.S. sanctions. The latest U.S. measures target several China- and Hong Kong-based entities involved in Iran-related trade but have stopped short of imposing broad sanctions on major Chinese financial institutions. Analysts say the effectiveness of the U.S. campaign will depend partly on whether Washington is willing to escalate pressure on Beijing, potentially increasing tensions between the world’s two largest economies.
The dispute also comes as Trump prepares for a planned meeting with Chinese President Xi Jinping, making Iran an additional point of tension in already complex U.S.-China relations. Washington is seeking to reduce Iran’s ability to finance its government and military activities, while Beijing has called for diplomatic efforts to resolve the conflict and has resisted joining the U.S. campaign. China’s continued purchase of Iranian oil and broader trade ties could make it difficult for Washington to completely isolate Tehran without risking a wider confrontation with Beijing.
Sources: The Washington Post, NHK, CNN, CBS News, Associated Press, Reuters and The Guardian.