‘Who says I’m not?’: Trump hints at sanctions on Chinese banks over Iran ties

WASHINGTON, DC: As Donald Trump seeks to end the months-long war with Iran, he appears willing to take even aggressive steps to isolate Tehran, including risking fresh tensions with close ally China.

The 80-year-old President, on Thursday, August 27, hinted at possible sanctions on Chinese banks over their links to the Middle Eastern country.

Trump hints at sanctions on Chinese banks over Iran ties

Following Trump's threats, Treasury Secretary Scott Bessent, earlier this week, announced an "economic D-Day" against Tehran in an attempt to "collapse" the Iranian government through economic sanctions and other measures.

He also threatened severe financial penalties against any nation that helps Iran evade sanctions, adding that “this will be Economic Warfare and Isolation on an unprecedented scale.”

While China has not openly helped Iran evade US sanctions, Beijing remains Tehran's biggest trading partner, buying an estimated 80% of Iran's oil exports.

Chinese banks continue to process payments linked to oil purchases and other trade between the two countries.

At an Oval Office event, a reporter pressed Trump on whether he would sanction Chinese banks over such transactions, prompting the President to respond in his typical fashion.

"Who said I'm not?" he said cryptically. "I mean, who said I'm not?” To which the reporter replied: “Bessent didn't announce it.”

“You don't know if I'm doing it. Well, I don't have to announce everything, do I?" Trump immediately hit back.

The US Treasury has yet to sanction any major Chinese banks, though it has targeted several companies in mainland China and Hong Kong over allegations that they support Iran's government and armed forces.

China denounces Trump sanctions on Iran as ‘illegal’

As Trump continues to hint at possible action against China, the country has already vowed to protect its interests as it denounced the threat of US sanctions for its trade with Iran, saying any such measures would be illegal.

“Cooperation between China and Iran has always been conducted within the framework of international law and should not be interfered with or disrupted,” Lin Jian, the spokesperson for China's foreign ministry told reporters earlier this week.

“China has already stated many times that it firmly opposes illegal unilateral sanctions. China will take all necessary measures to firmly safeguard its own rights and interests,” they continued.

The move comes just weeks before Trump is expected to meet Chinese President Xi Jinping next month, adding another layer of tension to already strained US-China relations.

Washington could face retaliation from Beijing, which controls much of the global supply of rare earths and other critical minerals essential for making a wide range of high-tech products.

China has already tightened controls on rare-earth exports during previous trade tensions with the US, giving Beijing another potential source of leverage.