US Ready to Impose Sanctions on China if It Does Business with Iran

The United States government has officially launched a new economic pressure campaign titled ‘Operation Economic Outcast’ aimed at cutting off Iran’s vital revenue streams. In the announcement, Washington issued a stern warning to China and other countries about the risk of secondary sanctions if they continue business relations with Tehran.

US Treasury Secretary Scott Bessent stated that the operation will focus on five strategic sectors of Iran’s economy. The move is intended to narrow the Iranian regime’s room for manoeuvre in the global market.

‘Those who stand with the United States will reap the benefits of our partnership. Those who bind themselves to the Iranian regime must be prepared to share in the isolation experienced by that failing regime,’ Bessent asserted at a press conference in Washington D.C. on Monday (24/8).

Bessent stressed that no entity or country is immune to the authority of the US Treasury Department. China, as Iran’s main trading partner, was specifically named as a party that could be targeted if it does not halt the economic activities identified by the US.

The US has set a specific deadline for each country to cease business activities with Iran. If the deadline is ignored, Washington has threatened to take unilateral action. One of the severe consequences prepared is removing entities that facilitate money laundering for Iran from the US dollar clearing system.

In addition to the threat of secondary sanctions, the US Treasury Department has decided to impose direct sanctions on approximately 60 entities, individuals and vessels worldwide. This group is deemed to have played a role in facilitating Iran’s economic activities.

This aggressive move comes amid President Donald Trump’s efforts to reach a new agreement to end the six-month conflict with Iran. The warning was also delivered just a month before Chinese President Xi Jinping’s planned state visit to the United States, which is predicted to add tension to the agenda of the two leaders’ meeting.