The U.S. Treasury sanctioned Chinese entities over their Iran trade last week, and Treasury Secretary Scott Bessent warned governments worldwide to halt commerce with Tehran or face similar penalties.
China rejected the ultimatum on Tuesday. Beijing said it would not cut economic ties with Iran or submit to what it called "economic warfare," according to the Washington Times and the Guardian, which both reported the formal denunciation.
NBC News reports the U.S. push to isolate Iran economically has hit a roadblock in China, whose refineries are among the largest buyers of Iranian crude.
The standoff raises the risk the confrontation widens beyond Tehran into a wider test of Washington's ability to enforce sanctions against a major power, per Reuters' account of the sanctions program's scope.
China's rejection complicates the coalition Washington is trying to assemble against Tehran. The question now is whether the U.S. escalates enforcement directly against Chinese banks and refiners — a step that would pull the dispute deeper into broader US-China economic relations.