Imposing sanctions to punish countries that are helping Iran fight the current war is not a new policy. But the Trump administration has announced a new phase or expansion of it, Operation Economic Outcast. China is among the Iran-enablers mentioned, and CNBC says that the crackdown “could clash with China trade talks” (August 24, 2026).
President Donald Trump is calling world leaders and making “specific requests to cease their interactions” with Iran, [Treasury Secretary Scott Bessent] said at the Treasury Department.
The promised sanctions have yet to be imposed. The U.S. will instead start by sending timelines to individual countries to “shut down activities we have identified,” Bessent said….
Bessent suggested at Monday’s event that China would not be exempt.
“We want to make clear here today that no one is above the reach of U.S. sanctions,” Bessent said when asked if the administration would target Chinese banks, or if it would avoid doing so in order to preserve relations with Beijing.
“If they facilitate transactions and are part of the ecosystem that turns Iranian oil into money, into repression, they will be targeted,” Bessent said.
The report is not fully accurate. In fact, some new sanctions were imposed immediately. But it’s true that others depend on timeline-linked compliance.
Sanctions and categories
An August 24 Treasury press release states that “Today’s actions” include “expanding the categories of Iran-related conduct that may be subject to secondary sanctions in the future”; imposing sanctions on “nearly 60 entities, individuals, and vessels in multiple jurisdictions that enable the Iranian regime’s recklessness, including illicit nuclear and missile technology procurement, cyber operations, and oil‑revenue generation networks”; and suspending “several general licenses that previously authorized certain remittance payments to Iran and Iranian access to the U.S. cultural and academic system.”
The official Chinese response seems muted so far. A foreign ministry spokesman, Lin Jian, says that “China’s cooperation with Iran has always been conducted within the international framework and should not be interfered with or undermined” and that the Chinese government will do what is necessary to protect its interests.
He also “urged parties to act rationally with restraint, warning that sanctions and pressure tactics do not help to resolve issues.” According to this official statement, then, the Chinese Communist Party is now opposed to pressure tactics.
