China and Iran sanctions: what US moves mean for Beijing, and its retaliation options

The United States has imposed sweeping sanctions on nearly 60 Iran-linked entities, spanning digital assets, technology, gold, aviation and shipping, as Washington seeks to “sever every economic lifeline” that sustains Tehran.Beijing denounced the measures, with the Chinese foreign ministry calling them “illegal unilateral sanctions” and vowing to “take all necessary measures to firmly safeguard its rights and interests”.With the fresh sanctions complicating an already delicate diplomatic detente, we examine the Chinese entities targeted, delineate Beijing’s red lines and assess the potential economic countermeasures that China’s leadership could utilise if tensions escalate.How do Washington’s new sanctions on Iran affect China?More than a dozen Hong Kong- and mainland-based entities and individuals were named in the latest round of sanctions, primarily for helping to procure sensitive goods or for shipping Iranian oil.