China Rejects 'Illegal' US Sanctions Threat Over Iran Trade

China has strongly criticized a US warning to impose sanctions on two Chinese banks over alleged transactions with Iran, calling the move “illegal” and unacceptable without United Nations approval.

On Thursday (April 16), China said it opposes any unilateral sanctions that are not approved by the UN Security Council. Chinese Foreign Ministry spokesperson Guo Jiakun said Beijing rejects so-called “secondary sanctions” targeting Chinese financial institutions.

The response came after US Treasury Secretary Scott Bessent confirmed that Washington had sent letters to two Chinese banks. The letters warned that sanctions could be imposed if there is evidence the banks facilitated transactions involving Iranian funds.

Bessent also noted that China previously purchased over 90 percent of Iran’s oil exports, accounting for around 8 percent of China’s total energy consumption. US officials believe those imports could decline due to increasing pressure on Iran’s oil trade.

Recent diplomatic efforts between the US and Iran have failed to produce an agreement. Following this, Washington announced stricter sanctions targeting Iran’s oil sector.

China has maintained that disputes over trade and sanctions should be handled through multilateral frameworks, warning against actions that could escalate tensions in global markets.