Treasury Secretary Scott Bessent has issued a pointed warning to China, urging Beijing to leverage its diplomatic influence to help end the ongoing conflict in the Middle East. Speaking ahead of President Donald Trump's scheduled visit to Beijing next week, Bessent highlighted China's substantial purchases of Iranian oil, which he described as a financial lifeline for the Islamic Republic.
China is the largest buyer of Iran's oil exports, accounting for approximately 80 to 90 percent of the total. Despite US sanctions targeting Iran, Beijing recently instructed its companies to disregard these restrictions, a move that threatens to strain banking transactions between the two nations. Bessent emphasized that Iran is the world's largest state sponsor of terrorism, and by purchasing its oil, China is effectively funding that regime.
Bessent's Remarks on Fox News
In an interview with Fox News, Bessent downplayed the notion that China holds the upper hand in negotiations, stating, "China always seeks an advantage. They seek an advantage in everything. They seek an advantage in the seating chart." He urged China to step up diplomatically and help persuade Iran to reopen the Strait of Hormuz, which has been threatened by Iranian attacks.
"All I'll say is Iran is the largest state sponsor of terrorism and China has been buying 90 percent of their energy," Bessent said. "So they are funding the largest state sponsor of terrorism, but more importantly, the threat of attacks from Iran has closed the Strait. We are reopening it, so I would urge the Chinese to join us in supporting this international operation."
Upcoming Trump-Xi Summit
The Treasury Secretary is expected to accompany President Trump to Beijing for a highly anticipated summit with Chinese President Xi Jinping, scheduled for Thursday and Friday next week. The visit, originally planned for early April, was postponed by Trump due to the ongoing conflict with Iran. Despite the lack of a formal end to hostilities, the trip appears to proceed as planned.
Bilateral discussions are expected to cover technology, tariffs, and trade. Trump has repeatedly expressed a desire for China to play a role in de-escalating the Iran war, noting that China obtains much of its oil from the Islamic Republic. In a mid-April statement, Trump wrote, "President Xi is very happy that the Strait of Hormuz is open and/or rapidly opening. Our meeting in China will be a special one and, potentially, Historic."
China's Defiance on Sanctions
Beijing's recent directive for companies to ignore US oil sanctions on Iran has added tension to the relationship. The move came just days after China blocked a $2 billion acquisition of Chinese AI company Manus by Meta, signaling a desire to protect its emerging technology sector. These actions underscore the complex dynamics ahead of the summit.
In April, Trump mentioned that "a gift from China" that was "not very nice" was found on an Iranian ship, expressing surprise given his perceived good relationship with President Xi. "But that's all right. That's the way war goes, right?" he said in a CNBC interview.
As the world's two largest economies prepare to meet, all eyes are on whether China will heed Bessent's call to use its influence to help end the Middle East conflict and reopen critical shipping lanes.
