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China’s opposition to illegal unilateral sanctions is consistent and unequivocal: FM on possible US sanctions on Chinese banks over Iran ties

By Ma Tong | Global Times | August 28, 2026

China on Friday reiterated that dialogue and negotiation is the only viable way to resolve the Iran issue and that its opposition to illegal unilateral sanctions is consistent and unequivocal, after US President Donald Trump suggested Washington could impose sanctions on Chinese banks doing business with Iran.

“On the Iran situation, we always believe that dialogue and negotiation is the only viable way out. China opposes illicit unilateral sanctions. This position is consistent and clear,” Chinese Foreign Ministry spokesperson Lin Jian told a regular press briefing on Friday.

Trump on Thursday hinted at possible sanctions on Chinese banks when asked whether Washington would punish them for doing business with Iran. “Who said I’m not? You don’t know if I’m doing it … I don’t have to announce everything, do I?” Trump said, according to Reuters.

The remarks came as the US has intensified economic pressure on Iran, broadening the sectors and actors targeted by its sanctions campaign after months of military strikes and diplomacy failed to fully reopen the Strait of Hormuz.

Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Friday that the latest US push to tighten sanctions on Iran reflects a clear expansion of US’s unilateral sanctions approach, which had previously focused more heavily on traditional sectors such as energy and oil and gas.

“What we are seeing is a continued broadening of both the sectors covered and the entities targeted,” Zhou said. He described the trend as a further “generalization” of US restrictions, with the US extending unilateral measures into new areas and to a wider range of actors, in some cases beyond the scope of previous international consensus on Iran-related sanctions.

Washington has already targeted Chinese mainland and Hong Kong entities in previous rounds of Iran-related sanctions. But it stopped short of blacklisting major Chinese banks and refiners, the South China Morning Post reported on Friday.

Zhou warned that extending such measures to financial institutions would sharply magnify the fallout, given the broad, complex and two-way nature of cross-border financial networks. “If such sanctions were actually imposed, the impact would be extensive and may significantly escalate tensions in China-US relations,” he said, adding that such a move would be detrimental to both sides.

The latest threat comes as the US expanded its sanctions on Iran. On Monday, the US Treasury launched “Operation Economic Outcast,” expanding the categories of Iran-related conduct potentially exposed to secondary sanctions and sanctioning nearly 60 entities, individuals and vessels across multiple jurisdictions. It also warned that entities facilitating certain Iran-related activities could risk being cut off from the US financial system.

China has repeatedly rejected such pressure. Lin said on Tuesday that economic warfare and maximum pressure “provide no solution” and would instead fuel tensions and lead to risk spillover, disrupting the global economic and financial order, and harm the legitimate rights and interests of other countries. Lin also stressed that China will do everything necessary to firmly safeguard its rights and interests.

Zhou emphasized that the latest US threats also run counter to efforts to translate the consensus reached by the Chinese and US heads of state into concrete actions and build a more constructive and stable bilateral relationship.

“China’s door to negotiations has always been open,” Zhou said. “If the US genuinely wants to implement the consensus reached by the two sides, it should stop resorting to threats and take concrete steps toward mutually beneficial cooperation, or at the very least, reasonable and fair competition, rather than continuing to rely on unilateral measures.”

August 29, 2026 - Posted by aletho | Economics, Militarism, Wars for Israel | China, Iran, United States