The U.S. Treasury Department is preparing to broaden the scope of secondary sanctions on Iran, according to a source cited by Reuters. Washington has also asked China to take part in the new measures, according to WFAA. Neither report specifies which sectors or entities the widened authority would cover.
Secondary sanctions can penalize non-U.S. companies and banks for transacting with a sanctioned country. Pulling China into scope would mark an escalation, given Chinese entities' exposure to dealings with Iran.
Broadening secondary sanctions and courting Chinese participation raises the stakes for U.S.-China relations, already strained over trade and technology disputes.
What to watch: whether Treasury names specific sectors or firms in formal designations, and whether Beijing responds to Washington's request, according to Reuters and WFAA.