China warns US it will not cut Iran ties, vows retaliation over sanctions

China warned the US it will not sever ties with Iran and will retaliate if Washington continues new sanctions, following US Treasury Secretary Scott Bessent's declaration of an "economic D-Day" against Tehran. Beijing defended its cooperation with Iran as legitimate and vowed to safeguard its interests. China buys up to 90% of Iran's oil, providing critical revenue, and any US effort to strangle Iran's finances would target Chinese banks processing payments. Such escalation risks derailing the trade truce between President Trump and President Xi Jinping ahead of their summit next month. The US imposed fresh sanctions on 60 entities, including Hong Kong and mainland China-based firms, but avoided major Chinese financial institutions. Bessent said the US would not "blow up the global financial system," while China condemned the measures as unilateral and urged negotiations.