China ties limit Trump's economic pressure on Iran

The United States' economic campaign to isolate Iran faces its main obstacle in China, as Washington seeks to preserve a trade truce with Beijing ahead of a Trump-Xi meeting, analysts said. China is Iran's largest trading partner and top oil buyer, receiving over 80% of Iranian crude exports, often through indirect channels. US Treasury Secretary Scott Bessent announced operation "Economic Outcast" on Monday but avoided detailing potential measures against Beijing, with President Donald Trump set to host Chinese counterpart Xi Jinping in September. Experts noted the announcement carefully avoided specifics that could disrupt the summit. China's foreign ministry stated cooperation with Iran operates "within the framework of international law" and should not be disturbed. Analysts expect Beijing to do the minimum needed to avoid direct confrontation, using practices like ship-to-ship transfers to obscure crude origins. China may show cooperation if Washington's goal is pressuring Tehran on the Strait of Hormuz rather than regime collapse. The US has so far avoided sanctioning major Chinese banks, though it targeted nearly 60 Iran-linked entities, including some in mainland China and Hong Kong.