China Firmly Rejects US Demand To Back Its ‘Most Crushing Economic Operation’ Against Iran

China has firmly rejected Washington’s call to join in implementing US sanctions to “squash” Iran’s economy, pushing back against Trump administration pressure to be part of the “toughest sanctions in history” which has marked a new phase of conflict focused on extended economic warfare, as a military solution is seen as increasingly unrealistic and unlikely.

“Regarding the Iran issue, sanctions and pressure do not help resolve the problem,” Reuters quoted a representative of the Chinese Embassy in Washington as saying. The White House’s new plan is to include heavy reliance on international pressure on external countries to impose extreme isolation on the Islamic Republic.

Chinese foreign ministry spokesman Lin Jian said the same to reporters Friday in a regular briefing. “China calls on all relevant parties to take responsible measures and resolve the problem through political and diplomatic means,” he said.

Asked specifically about the latest comments of US Treasury Secretary Scott Bessent, Lin emphasized the need for all parties to take “responsible measures” in resolving the war. “China opposes illegal unilateral sanctions that have no basis in international law and are not authorized by the UN Security Council,” Lin said.

Bessent had on Thursday told CNBC: “It is a one-two punch. We have ​the blockade (on Iran), and we are going to have the toughest sanctions in history.” He then vowed, “It is going to work in Iran and we are going to collapse this ⁠regime.”

He further invoked some (infamous) words of President George W. Bush issued to allies in the wake of the 9/11 attacks. “You are either with us, or against us,” Bessent said in the interview. “This is going to be the greatest coordinated economic isolation in the history of the world.”

Such back-and-white rhetoric is very unlikely to sway the Chinese, given also that of course they know what happened next after that original proclamation by Bush – American forces got stuck in no less than two quagmires in the Middle East, Afghanistan and Iraq, in what came to be viewed cynically as ‘forever wars’. 

What’s more as the blowback in Baghdad was pretty immediate, as a key unintended consequence of the US regime change war was the ascendancy of pro-Iran Shia politicians ruling Iraq. Beijing is all too aware of the US score card in the region, even as Washington decision-makers continue ignoring the glaring lessons of recent history.

Bessent seemed perplexed at the reaction in oil prices on Thursday, while he also said that discussions with Beijing would be best done in private:

“I think oil markets are misinterpreting what this economic pressure ​means,” Bessent said on Thursday. Oil ​prices climbed to more ⁠than three-week highs on Thursday.

“We have asymmetric information, and I’m not sure why oil has popped up on this,“ Bessent said. “If we are doing the maximum economic ​pressure, then that means that likely there will not be a large-scale kinetic ​restart.”

When asked ⁠if the U.S. could target China for doing business with Iran, Bessent said many conversations were best to have in private.

“We are confident that everyone wants the Strait (of Hormuz) reopened, and for energy prices to come back down,” ⁠he continued. “Keep ​in mind that the Chinese get 50% (of their) energy from ​inside the Gulf. So it would do them a big service to get with the program.“

Still, Bessent has been busy doubling-down on Trump’s message shift this week (opting for an economic siege warfare ‘solution’ as after military strategy hasn’t gone so well)…

Any remaining tie to Tehran will hasten a nation’s economic oblivion, whether that tie be purposefully constructed or willfully ignored. pic.twitter.com/T3vticluAg

— Treasury Secretary Scott Bessent (@SecScottBessent) August 20, 2026

Tehran has been consistently saying that is is ready for a long war, whether that come in the form of more US-Israeli bombs, or else an economic siege. Even Reuters has acknowledged the obvious in its own coverage, saying “Iran has weathered punishing economic sanctions for nearly 50 years, since the Islamic Revolution of 1979.“

“Iranian Foreign Minister Abbas Araqchi called Trump’s comments an attempt to divert American public opinion from domestic financial problems, including record debt and rising interest rates,” the report added.

There’s an additional important factor. At this point there’s no way that the two key UN Security Council permanent members Russia and China will sign off on any big new anti-Iran sanctions regimen brought before the United Nations.

Closer to home, the White House risks more China blowback, especially with President Xi Jinping slated to visit the US next month. Bloomberg poses the following in Friday analysis:

“Is the White House willing to prioritize this new economic warfare campaign above its China relationship? And if it chooses to, there are serious ramifications,” said Chris Kennedy, an economic statecraft analyst at Bloomberg Economics. Kennedy said the new threats are also an “admission that the US is running out of options.”

Any decision to hit China would risk worsening tensions just weeks before Trump hosts Xi for the Chinese leader’s first visit to Washington in a decade. It also raises the threat of Chinese countermeasures that could inflict pain on the US economy ahead of November midterm elections that will hinge on pocketbook issues.

Beijing has already demonstrated a willingness to push back against Trump, most notably by announcing export restrictions on rare earths that forced the White House into a climbdown from their tariff fight.

Meanwhile, more pushback against this week’s Axios report saying that large quantities of oil are moving through the Strait of Hormuz via a US Navy established ‘stealth’ corridor:

Why aren’t the Iranians attacking more ships transiting the Strait of Hormuz to inflict more pain on the US? Why are they so copacetic about it? According to this level-headed (run it through Google translate) analysis by Iran’s official news agency, the US is lying about the… pic.twitter.com/K6A8tgLojB

— Borzou Daragahi (@borzou) August 20, 2026

On Friday, Iranian President Masoud Pezeshkian said that Iran will “under no circumstances bow to bullying.” But he also struck somewhat of a conciliatory tone, perhaps signaling Iran is still open to dialogue so long as Washington is willing to compromise.

“It would be better to end the war today, now that we are strong and have dignity, with the whole world acknowledging our victory,” the semi-official Iranian Students’ News Agency quoted him as saying.