U.S. President signals potential secondary sanctions on Chinese financial institutions amid heightened Iran-related tensions.
U.S. President Donald Trump indicated he may impose sanctions on Chinese banks, citing their involvement in Iran’s oil trade. The remarks came as officials from both nations met in Beijing to prepare for Chinese President Xi Jinping’s upcoming state visit to Washington.
Treasury Secretary Scott Bessent earlier warned that Chinese banks facilitating Iranian oil transactions could face U.S. penalties. Despite the tough rhetoric, both sides emphasized cooperation, with U.S. Ambassador David Perdue meeting Chinese officials to discuss Xi’s visit. China’s readout noted progress in high-level diplomatic engagements.
Markets remain watchful as the U.S. escalates pressure on China while maintaining dialogue. No specific sanctions have been announced, but the threat adds uncertainty to trade and financial relations.