The U.S. Treasury Secretary, Scott Bassett, has announced that he will meet with He Lifeng, the Chinese Vice Premier, this weekend to discuss Beijing's financial relations with Iran. These discussions come ahead of a summit between Donald Trump, the U.S. President, and Xi Jinping, the Chinese President, at the end of this month. As the U.S.-Iran war enters its seventh month, Washington is seeking global support for its new sanctions aimed at severing Iran's financial ties and bringing the country to the negotiating table.
New Sanctions and Their Implications
Last month, the U.S. Treasury Department announced that it has expanded secondary sanctions. These sanctions target businesses and countries that continue to engage in transactions with Iran. The Treasury has warned that companies cooperating with Tehran risk being cut off from the dollar-based global financial system. While the U.S. has introduced new measures against Chinese refineries purchasing Iranian crude oil at a discount, it has yet to take further actions against Chinese financial institutions.
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Reactions and International Cooperation
China was Iran's main trading partner in 2025 and has previously stated that it will "take all necessary measures to firmly protect its interests." The European Union also supported the new U.S. sanctions campaign against Iran during the G20 financial meeting in North Carolina, adding that the bloc is prepared to take further actions. Additionally, the United Arab Emirates announced that it has suspended its trade and financial dealings with Iran due to threats from the country, ahead of Bassett's "Economic Exclusion Operation" plan.
Bassett, in response to questions from congressional representatives during his annual meeting, stated, "We have seen very proactive statements from the UAE," adding that a Treasury official recently visited the UAE and had good discussions with all members of its financial system.
Bassett's remarks come just days after the U.S. Treasury targeted Russia's second-largest financial bank, VTB Bank, for transferring billions of dollars in Iranian assets. This bank had previously faced heavy sanctions due to Russia's invasion of Ukraine in 2022. The U.S. Treasury has also targeted a Turkish investment bank and a branch of an Egyptian bank in the UAE. The Central Bank of the UAE announced on August 30 that it would conduct special and urgent reviews of the activities of these branches.
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