President Donald Trump may have called on the United Nations to unite against Iran, but don’t expect him to press his case with China.
The US has so far declined to sanction Chinese banks despite seeking to exert maximum economic pressure on Iran.
That’s “the last line to cross” if “you really want to put the squeeze,” Bloomberg Economics’ Jennifer Welch said.
Other sanctions, like the ones on Iranian airlines that take effect today, “are certainly painful,” Welch, who served as the National Security Council’s director for China and Taiwan during Trump’s first administration, added. “But it’s not going for the jugular.”
Treasury Secretary Scott Bessent signaled Monday that he discussed Iran-related sanctions with Chinese Vice Premier He Lifeng over the weekend, adding that “with many countries … quiet, behind-the-scenes discussions are better.”
Asked Friday whether Trump would raise the issue with Xi, a senior US official said only that the Treasury Department had already moved to sanction some Chinese companies and “that will continue going forward.”
“I can’t imagine ... that the US is going to really go for the jugular” given its reliance on Chinese rare earths, Welch said. “Some of the banks ... would be rather politically sensitive to Beijing and so would risk some significant flare-up in tension.”