“Any country complicit in providing an economic lifeline to Iran’s terrorist regime, including China, must be held accountable,” said Rep. Darin LaHood (R-Ill.), a member of the House Select Committee on China. Sanctions on Chinese banks that do business with Iran would send “a clear message to China and every other nation that enabling Tehran’s malign actions will come at a cost,” he said.
As part of the push to widen sanctions on countries with economic ties to Iran, the Treasury Department expanded its ability Monday to penalize foreign companies that operate in or support five sectors of Iran’s economy: digital assets, technology, gold, aviation and shipping.
Bessent stressed Monday the need to sanction those who “facilitate the flow of its finances” to keep the regime afloat and said “no one is above the reach of U.S. sanctions” when asked if he’s willing to sanction Chinese banks.
But the Treasury Department did not target any Chinese banks in its initial list of sanctioned entities. The administration instead targeted several Hong Kong and China-based companies implicated in illicit Iranian oil transfers and assistance with Tehran’s missile technology development program.
Bessent said Monday that he’ll sanction a major foreign financial institution by the end of the week as part of the new effort, but declined to provide details.
Going after Chinese banks would not only antagonize Beijing at a time when the U.S. is trying to hold on to a fragile trade truce with China, it also risks destabilizing the global finance sector.