China warns US of retaliation over expansion of Iran sanctions

China warns US of retaliation over expansion of Iran sanctions Submitted by MEE staff on Tue, 08/25/2026 - 13:48 Beijing says it will defend Chinese companies against secondary sanctions US President Donald Trump shakes hands with China's President Xi Jinping in Beijing, 15 May 2026 (Reuters) Off China on Tuesday warned the US that it could retaliate if Washington expands its sanctions campaign against Iran to target Chinese companies, potentially opening a new front in tensions between the world’s two largest economies. The warning came after US Treasury Secretary Scott Bessent on Monday announced measures aimed at further isolating Iran and threatening countries that continue to trade with Tehran with exclusion from the dollar-based financial system. The Financial Times reported that Beijing had warned against any significant extension of secondary sanctions to Chinese businesses, with a foreign ministry spokesperson saying that China would take “all necessary measures” to protect its interests.