China poses a major challenge to Trump's new Iran sanctions

The Trump administration's new economic campaign against Iran faces a major obstacle in China, Iran's largest trading partner and top oil buyer, raising doubts about the strategy's effectiveness. Treasury Secretary Scott Bessent announced "Operation Economic Outcast" targeting nearly 60 Iran-linked entities, including some in mainland China and Hong Kong, but avoided specifics on China to protect an upcoming Trump-Xi summit. Beijing responded cautiously, saying cooperation with Iran is within international law and vowing to safeguard its interests. Analysts say China will likely do the minimum to comply, such as reducing oil imports, without severing ties. Both nations seek to avoid escalation before the summit, with Trump unlikely to take a confrontational stance given his desire to maintain trade truce and personal rapport with Xi.