Treasury Secretary Scott Bessent’s campaign against Iran’s global financial connections faces a major complication in China, Tehran’s biggest trading partner and leading oil buyer. China receives more than 80% of Iranian oil shipments, often through indirect channels, while President Donald Trump is preparing to host Chinese leader Xi Jinping next month to preserve a fragile trade truce. The Trump administration has not detailed how it would target China, raising questions about how far Washington can press Beijing without risking higher tensions and economic costs. In response to Bessent’s announcement of Operation Economic Outcast, China said its cooperation with Iran complies with international law and opposed illegal unilateral sanctions. Analysts expect Beijing to offer limited cooperation rather than openly confront Washington, potentially by reducing Iranian oil imports, but not severing ties. The Treasury Department has already penalized nearly 60 Iran-linked entities, including mainland Chinese and Hong Kong-based organizations, a China-owned crude oil tanker and a Hong Kong business linked to Iran’s shadow fleet. Analysts say Trump is unlikely to adopt a highly confrontational posture toward China before Xi’s visit, which could also support a possible Trump trip to China in November for the Asia-Pacific Economic Cooperation leaders summit.