Will US threats over Iran be the last straw for Beijing?
US Treasury Secretary Scott Bessent threatened sanctions against nations purchasing Iranian crude oil, implicitly targeting China, Iran's largest oil customer. The US has imposed new sanctions on 60 individuals, companies, and vessels linked to Iranian trade, including some in mainland China and Hong Kong. China has signaled it will not be coerced, and the stand-off could cause a major rupture in bilateral relations.
Why it matters: This development directly affects the theme of US-China economic decoupling, as Washington's sanctions and tariffs escalate tensions despite the May summit's apparent stabilization.