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The Trump administration is stepping up pressure on China ahead of President Donald Trump’s upcoming summit with Chinese President Xi Jinping over what US officials describe as Beijing’s economic and material support for Iran and Russia.
A senior administration official told reporters on Sunday that Trump had already spoken with Xi “several times” about “the revenue that China provides to both of those regimes and so about dual-use goods, components and parts, not to mention the ability to export weapons.”
“I expect the conversation to continue,” the official said during a White House preview call ahead of Trump’s visit to Beijing.
The comments underscore how deeply Iran and Russia have become intertwined with broader U.S.-China relations, with the administration increasingly framing Beijing not only as an economic competitor but also as a significant enabler of adversarial regimes.
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“You have seen some actions from the US side in the last few days, meaning sanctions, I’m sure that will be part of that conversation,” the official said.
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 October 30, 2025. (Reuters/Evelyn Hockstein)
China in early May ordered companies to ignore US sanctions targeting Iranian oil, a direct test of US action.
A new directive issued through China’s commerce ministry on Sunday implements a 2021 “blocking law” that bars companies from complying with foreign sanctions deemed illegitimate. The order applies to several Chinese refiners that the US has accused of buying Iranian crude, including major independent processors known as “teapot” refineries.
The move represents a shift from years of opaque work toward more overt state-backed resistance, as Beijing signals it will not cooperate with U.S. efforts to cut off a major source of revenue for Iran.
China orders companies to ignore US Iran sanctions and challenges US to take action
US officials have accused China of helping maintain Iran’s military and economic capabilities through oil purchases, dual-use exports and intermediary networks linked to Tehran’s drone and missile programs.
Chinese officials hit back at the allegations, saying Beijing adheres to strict export controls and accusing Washington of misrepresenting its role.
Chinese Embassy spokesman Liu Pengyu said, “China always acts prudently and responsibly on the export of military products, and maintains strict controls in accordance with China’s laws and regulations on export control and appropriate international obligations.”
“China opposes groundless slander and ill-intentioned cooperation,” Liu said. “The main priority is to make every possible effort to prevent a recurrence of the fighting by all means, rather than exploiting the conflict to maliciously defame other countries.”
Liu also stressed that China is ready 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 forward with some diplomacy and get the Iranians to open the strait,” Besant said in an interview with Fox News on May 4.
“Iran is the largest state sponsor of terrorism… China is buying 90 percent of their energy, so they are funding the largest state sponsor of terrorism,” he said.
China has ordered companies to defy US sanctions targeting Iranian oil, posing a direct test of Washington’s ability to enforce its crackdown on Tehran. (Dominic Patton/Reuters)
Chinese officials have repeatedly defended Beijing’s trade relations with Iran as “normal economic cooperation” and criticized US sanctions as unilateral measures that interfere with legitimate trade.
China has become Iran’s biggest economic lifeline in recent years, buying the overwhelming majority of Iranian oil exports despite US sanctions. Analysts and US government reports say those purchases generate billions of dollars in revenue for Iran and help finance the regime’s military activities and regional proxy networks.
The Treasury Department has also repeatedly imposed sanctions on Chinese and Hong Kong-based companies accused of helping Iran procure materials and components related to ballistic missiles and drones, including parts related to the Martyr drone program. US 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 significantly curtailed state-to-state arms sales to Iran under international pressure several years ago, U.S. officials and outside analysts say Chinese companies and intermediaries are playing a key role in supplying sensitive technologies and materials through commercial channels and sanctions-evasion networks.
The leaders are also expected to discuss Taiwan, cybersecurity, artificial intelligence and the rare earth supply chain during the summit, officials said.
The Liberian-flagged tanker Shenlong Suezmax, carrying crude oil from Saudi Arabia, arrives at India’s Mumbai port on March 12, 2026. (Rafiq Maqbool/AP)
The White House previewed discussions on a potential “US-China Board of Trade” and “Board of Investment”, which officials described as potential government-to-government mechanisms to manage trade and investment issues between the two countries.
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Administration officials also stressed that there would be no change in long-standing U.S. policy toward Taiwan, while highlighting increased U.S. arms sales to Taiwan and calling on Taiwan to further boost defense spending.
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Artificial intelligence is also emerging as an increasing focus in relationships.
Officials said Trump and Xi may 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 also pointed to ongoing discussions around 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.
