TRUMP HINTS AT SANCTIONS ON CHINESE BANKS OVER IRAN TIES

US President Donald Trump hinted on Thursday that his administration may impose sanctions on Chinese banks over their commercial links with Iran. When asked by reporters why the US had not sanctioned such banks, Trump responded: "Who said I'm not?" and added that he did not have to announce all policy decisions in advance. The remarks come weeks before Chinese leader Xi Jinping is expected to visit Washington for a bilateral summit.

Trump's comments followed an announcement by Treasury Secretary Scott Bessent on Monday of new sanctions against 60 entities and individuals worldwide, including some in mainland China and Hong Kong. Bessent stated that any entity facilitating money laundering on behalf of Iran would be removed from the US dollar system. The administration described these measures as "Economic D-Day" and said they were part of efforts to increase economic pressure on Tehran following military strikes and diplomatic negotiations that had failed to reopen the Strait of Hormuz or end the six-month conflict.

China has opposed US secondary sanctions related to Iran, characterising them as illegal. Trump's implicit threat of further sanctions on Chinese banks adds pressure to already strained US-China relations ahead of the anticipated bilateral summit in Washington.