Key Takeaways
- U.S. Treasury Secretary Scott Bessent accused China of indirectly funding Iran, the “largest state sponsor of terrorism,” by purchasing about 90 % of its energy exports.
- Bessent urged Beijing to join Washington in reopening the Strait of Hormuz, which Iran has blocked, and said the U.S. claims “absolute control” of the waterway.
- The remarks come just before President Donald Trump’s scheduled visit to Beijing for a face‑to‑face meeting with Chinese President Xi Jin‑ping.
- China and Russia recently vetoed a UN Security Council draft resolution condemning Iran’s blockade of Hormuz, calling the text one‑sided.
- Despite the Trump administration’s “maximum pressure” sanctions campaign—which followed the U.S. withdrawal from the JCPOA in 2018—China has continued to import Iranian oil.
- New U.S. sanctions on Chinese entities linked to the Iran oil trade prompted Beijing to reject Washington’s extraterritorial jurisdiction and vow to defend Chinese companies.
- Bessent highlighted a recent warming in U.S.–China ties, citing a preliminary trade deal and mutual respect between Trump and Xi, while noting the administration’s strategic shift toward the Western Hemisphere.
- The upcoming Trump‑Xi summit is expected to provide an opportunity for the two leaders to discuss the Hormuz crisis, sanctions, and broader bilateral issues.
Introduction and Accusation
U.S. Treasury Secretary Scott Bessent ignited a diplomatic firestorm by asserting that China is effectively financing Iran, which he labeled the “largest state sponsor of terrorism.” Speaking to Fox News, Bessent noted that Beijing purchases roughly 90 % of Iran’s energy exports, thereby channeling substantial revenue to Tehran. He framed the accusation as a call for China to use its economic leverage to curb Iran’s destabilizing activities, particularly its interference with maritime traffic in the Strait of Hormuz. The statement reflects the Trump administration’s broader strategy of pressuring Iran through economic means while seeking to enlist major powers like China in the effort.
Context of Trump’s Upcoming Visit
Bessent’s comments were timed strategically, arriving just days before President Donald Trump is set to travel to Beijing for a high‑level meeting with Chinese President Xi Jin‑ping. The summit, slated for next week, will mark the first face‑to‑face encounter between the two leaders since Trump’s return to the White House in January 2025. Both sides have signaled a desire to stabilize relations after a period of friction, and the Hormuz issue is poised to become a focal point of their discussion. Bessent suggested that the personal rapport between Trump and Xi could facilitate constructive dialogue on the matter.
Call for Cooperation on Strait of Hormuz
Beyond leveling criticism, Bessent appealed to China to partner with the United States in reopening the Strait of Hormuz, a vital chokepoint for global oil shipments that Iran has reportedly blocked through naval and militia actions. He asserted that the United States has “absolute control” of the strait and is leading an operation to guide stranded vessels out of the waterway. By inviting Beijing to join this “international operation,” Bessent hoped to translate China’s economic influence over Iran into diplomatic pressure that would persuade Tehran to cease its obstructionist tactics.
Details of Project Freedom and US Position
The U.S. initiative referenced by Bessent is popularly known as “Project Freedom,” a plan announced by President Trump on Sunday to escort commercial ships safely through Hormuz. Trump warned Iran against any attempt to impede the effort, emphasizing that the United States would not tolerate interference. Bessent reinforced this stance, stating that Iranian forces do not possess effective control of the strait and that the U.S. Navy is prepared to ensure freedom of navigation. The rhetoric underscores Washington’s determination to maintain open sea lanes while portraying Iran as the aggressor in the dispute.
China and Russia’s UN Veto
At the United Nations Security Council, China and Russia jointly vetoed a draft resolution that would have condemned Iran’s blockade of Hormuz. Chinese Ambassador Fu Cong explained that the proposal was deemed unbalanced, focusing solely on Tehran’s actions while ignoring what Beijing and Moscow view as provocative U.S. and Israeli operations against Iran. The veto illustrates the divergent perspectives within the council and highlights how geopolitical alignments can shape multilateral responses to regional crises. Beijing’s objection centered on the claim that the resolution failed to capture the “root causes and the full picture of the conflict.”
Background on US Maximum Pressure Campaign
Since withdrawing from the Joint Comprehensive Plan of Action (JCPOA) in 2018, the Trump administration has pursued a “maximum pressure” strategy aimed at curbing Iran’s nuclear ambitions and regional influence through stringent sanctions. The JCPOA had previously required Iran to scale back its nuclear program in exchange for relief from economic penalties. Despite the accord’s collapse, China has continued to import significant volumes of Iranian crude, undermining the effectiveness of U.S. sanctions. This persistent trade relationship has become a focal point of Washington’s frustration, prompting additional sanctions targeting Chinese firms involved in the oil trade.
Recent Sanctions on Chinese Entities and Beijing’s Response
Last week, the United States imposed sanctions on several Chinese entities accused of facilitating Iran’s oil exports. In response, Chinese Foreign Ministry spokesperson Lin Jian denounced the measures as “illicit unilateral sanctions that have no basis in international law.” He urged the United States to cease what he described as “willful slapping of sanctions” and the exercise of long‑arm jurisdiction, asserting that China would firmly defend the lawful rights and interests of its companies. The exchange underscores the growing tension over extraterritorial enforcement and the clash between U.S. policy objectives and China’s stance on sovereignty and non‑interference.
State of US‑China Relations and Prospects for Summit
Amid the Iran‑related friction, Bessent pointed to signs of improvement in the broader U.S.–China relationship. He referenced a preliminary trade agreement reached late last year and noted that the two sides have experienced “great stability” in their interactions, attributing this to mutual respect between Trump and Xi. The Treasury secretary also observed that the Trump administration intends to reallocate foreign‑policy resources toward the Western Hemisphere, potentially reducing the strategic focus on competition in the Asia‑Pacific. Nevertheless, the upcoming summit offers a concrete venue for the two leaders to address not only the Hormuz crisis but also lingering disagreements over trade, Taiwan, the South China Sea, and broader strategic rivalry.
Conclusion
The convergence of sanctions, maritime security, and diplomatic maneuvering places the Strait of Hormuz at the center of a complex U.S.–China dynamic. Scott Bessent’s blunt accusation that China is financing Iran serves both as a critique and an invitation for Beijing to assume a more active diplomatic role. As President Trump prepares to meet President Xi, the outcome of their talks could shape whether the two powers converge on a coordinated approach to reopening Hormuz or continue to pursue divergent strategies that keep the waterway—and the broader U.S.–China relationship—in a state of flux. The coming days will reveal whether the shared interest in stable global energy flows can outweigh the entrenched strategic suspicions that currently define the bilateral engagement.