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The Trump administration is ramping pressure on China over what U.S. officials describe as Beijing’s economic and material support for Iran and Russia ahead of President Donald Trump’s upcoming summit with Chinese President Xi Jinping.
A senior administration official told reporters Sunday that Trump already has spoken “multiple times” with Xi about “the revenue that China provides to both those regimes and therefore as well as dual use goods, components and parts, not to mention the potential of weapons exports.”
“I expect that conversation to continue,” the official said during a White House preview call ahead of Trump’s trip to Beijing.
The comments underscore how deeply Iran and Russia have become intertwined with the broader U.S.–China relationship, with the administration increasingly framing Beijing not only as an economic competitor but also as a critical enabler of adversarial regimes.
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“You’ve seen some actions, meaning sanctions coming out from the U.S. side just in the last few days that I’m sure will be part of that conversation,” the official added.
President Donald Trump shakes hands with Chinese President Xi Jinping during a bilateral meeting at Gimhae International Airport on the sidelines of the Asia-Pacific Economic Cooperation summit in Busan, South Korea, on Oct. 30, 2025. (Reuters/Evelyn Hockstein)
China ordered firms in early May to ignore U.S. sanctions targeting Iranian oil, a direct test of the U.S. crackdown.
A new directive, issued through China’s Commerce Ministry Sunday, invokes a 2021 “blocking statute” that prohibits firms from complying with foreign sanctions deemed illegitimate. The order applies to several Chinese refiners accused by the U.S. of purchasing Iranian crude, including major independent processors known as “teapot” refineries.
The move represents a shift from years of opaque workarounds to more explicit state-backed resistance, as Beijing signals it will not cooperate with U.S. efforts to cut off a key source of revenue for Iran.
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U.S. officials increasingly have accused China of helping sustain Iran’s military and economic capabilities through oil purchases, dual-use exports and intermediary networks tied to Tehran’s drone and missile programs.
Chinese officials pushed back on the allegations, saying Beijing follows strict export controls and accusing Washington of mischaracterizing its role.
“China always acts prudently and responsibly on the export of military products, and exercises strict control in accordance with China’s laws and regulations on export control and due international obligations,” Chinese Embassy spokesperson Liu Pengyu said.
“China opposes groundless smear and ill-intentioned association,” Liu added. “The pressing priority is to make every effort to prevent by all means a relapse in fighting, rather than exploiting the conflict to maliciously smear other nations.”
Liu also emphasized that China is prepared to work with the United States to “expand cooperation and manage differences in the spirit of equality, respect and mutual benefit.”
“China, let’s see them step up with some diplomacy and get the Iranians to open the strait,” Bessent said in a Fox News interview May 4.
“Iran is the largest state sponsor of terrorism … China has been buying 90 percent of their energy, so they are funding the largest state sponsor of terrorism,” he added.
China has ordered companies to disregard U.S. sanctions targeting Iranian oil, forcing a direct test of Washington’s ability to enforce its crackdown on Tehran. (Dominique Patton/Reuters)
Chinese officials have repeatedly defended Beijing’s trade relationship with Iran as “normal economic cooperation” and criticized U.S. sanctions as unilateral measures that interfere with legitimate trade.
China has become Iran’s largest economic lifeline in recent years, purchasing the overwhelming majority of Iranian oil exports despite U.S. sanctions. Analysts and U.S. government reports have said those purchases generate billions of dollars in revenue for Iran and help fund the regime’s military activities and regional proxy networks.
The Treasury Department also has repeatedly sanctioned Chinese and Hong Kong-based companies accused of helping Iran procure materials and components linked to ballistic missiles and drones, including parts tied to the Shahed drone program. U.S. officials have raised concerns about shipments of dual-use goods such as electronics, industrial equipment and missile-fuel precursor chemicals that can be used for both civilian and military purposes.
While Beijing largely curtailed overt state-to-state arms sales to Iran years ago under international pressure, U.S. officials and outside analysts say Chinese firms and intermediaries continue to play a significant role in supplying sensitive technologies and materials through commercial channels and sanctions-evasion networks.
Officials said the leaders are also expected to discuss Taiwan, cybersecurity, artificial intelligence and rare earth supply chains during the summit.
The Liberia-flagged tanker Shenlong Suezmax, carrying crude oil from Saudi Arabia, arrives at Mumbai Port in Mumbai, India, on March 12, 2026. (Rafiq Maqbool/AP)
The White House previewed discussions around a potential “U.S.-China Board of Trade” and “Board of Investment,” which officials described as possible government-to-government mechanisms for managing trade and investment issues between the two countries.
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Administration officials also emphasized there would be no change in longstanding U.S. policy toward Taiwan, while highlighting increased American arms sales to Taipei and calling for Taiwan to further boost defense spending.
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Artificial intelligence is also emerging as a growing focus in the relationship.
Officials said Trump and Xi could discuss establishing a formal communication channel on AI-related security concerns as both countries race to develop increasingly advanced systems with military and cyber implications.
Officials additionally pointed to ongoing discussions surrounding rare earth supply chains and access to critical minerals used in defense systems, electronics and advanced manufacturing.
The Chinese embassy could not immediately be reached for comment.
