Full Breakdown
US Treasury Seeks China Talks on Iran Financial Links Ahead of Trump-Xi Summit
By Drooid · · How we work
Core Event
U.S. Treasury Secretary Scott Bessent announced plans to meet Chinese Vice Premier He Lifeng “this weekend” to discuss Beijing’s financial relationship with Iran. The talks are scheduled before a summit later this month between President Donald Trump and President Xi Jinping. Bessent’s remarks were made during his annual testimony before Congress, where he outlined the United States’ effort to expand secondary sanctions aimed at cutting Iran’s access to the global dollar-based financial system.
Background & Context
The United States entered its seventh month of conflict with Iran, seeking to pressure Tehran into negotiations over the stalled reopening of the Strait of Hormuz. In the preceding month, Washington broadened secondary sanctions to target entities that continue transactions with Iran, warning that such firms could be excluded from the global financial network. The Treasury Department has previously sanctioned Russia’s VTB Bank for moving billions of dollars in Iranian assets. China remained Iran’s primary trading partner in 2025, and the United States has criticized Chinese “teapot refineries” that purchase discounted Iranian crude, though it has not yet targeted Chinese financial institutions directly.
Official Statements & Responses
He also noted forward-facing statements from the United Arab Emirates, which recently suspended its trade and financial transactions with Iran. The European Union, speaking at a G20 finance gathering in North Carolina, expressed support for the new U.S. sanctions and indicated readiness for further action.
Verbatim Quotes
- “We have had some very good private discussions, and I look forward to those continuing this weekend when I meet my Chinese counterpart ... and I'm sure it will continue during President Xi's state visit,” — Mr Bessent, US treasury secretary
- “I think that we have seen some very forward-facing statements from the UAE,” — Mr Bessent, US treasury secretary
What’s Next
The Treasury Department has not released details on the agenda of the U.S.–China meeting. The upcoming Trump-Xi summit later this month is expected to provide a broader diplomatic backdrop for any agreements that may emerge from the weekend talks.