U.S. accuses China of propping up Iran via oil purchases, weighs sanctions ahead of Trump–Xi talks
The Trump administration on Monday accused Beijing of keeping Iran financially afloat through continued purchases of Iranian oil, a charge officials said undermines Washington’s “maximum pressure” campaign against what the United States calls the world’s largest state sponsor of terrorism.
U.S. Treasury Secretary Scott Bessent said at a press briefing that China’s refusal to follow U.S. energy sanctions has weakened the effort to squeeze Tehran. He claimed Beijing is buying the bulk of Iran’s oil exports, effectively providing the revenue Tehran needs to sustain its military activity.
According to Bessent, that money helps fund drones, missiles and proxy groups accused of targeting global shipping and U.S. personnel. U.S. officials also pointed to a network of smaller Chinese refineries and informal banking channels that they say allows Iran to bypass sanctions.
By using non-dollar transactions and so-called “shadow” systems, Tehran has kept oil revenues flowing despite restrictions, they said. The comments come as Washington shifts focus from military tensions at sea to economic pressure under its “Project Freedom” strategy.
The timing is sensitive: the remarks came days before Donald Trump is expected to meet Chinese President Xi Jinping in Beijing. Washington is reportedly considering tougher steps, including secondary sanctions on major Chinese banks that continue to process Iranian transactions.
Two financial institutions have already been formally warned, and smaller independent refineries, often linked to shipments from Iran’s “dark fleet,” are also under scrutiny. China has rejected the accusations, calling them economic coercion. Officials have signalled that domestic companies should not comply with what they describe as unilateral U.S.
sanctions, arguing that energy security is a sovereign matter. Some analysts believe Beijing may see the Iran crisis as strategically useful, tying down U.S. resources in West Asia and easing pressure in the Indo-Pacific. The exchange underscores a widening rift.
U.S. officials see China as enabling Iran and adding to instability in global energy markets. Beijing, in turn, portrays Washington’s measures as an attempt to extend U.S. financial reach and contain China’s economic rise. What comes next may hinge on any decisions regarding secondary sanctions—and on the outcome of the expected Trump–Xi meeting.