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China Firmly Rejects US Demand To Back Its 'Most Crushing Economic Operation' Against Iran
China has firmly rejected Washington's call to join in implementing US sanctions to "squash" Iran's economy, pushing back against Trump administration pressure to be part of the "toughest sanctions in history" which has marked a new phase of conflict focused on extended economic warfare, as a military solution is seen as increasingly unrealistic and unlikely.
"Regarding the Iran issue, sanctions and pressure do not help resolve the problem," Reuters quoted a representative of the Chinese Embassy in Washington as saying. The White House's new plan is to include heavy reliance on international pressure on external countries to impose extreme isolation on the Islamic Republic.
Chinese foreign ministry spokesman Lin Jian said the same to reporters Friday in a regular briefing. "China calls on all relevant parties to take responsible measures and resolve the problem through political and diplomatic means," he said.
Asked specifically about the latest comments of US Treasury Secretary Scott Bessent, Lin emphasized the need for all parties to take "responsible measures" in resolving the war. "China opposes illegal unilateral sanctions that have no basis in international law and are not authorized by the UN Security Council," Lin said.
via EPABessent had on Thursday told CNBC: "It is a one-two punch. We have the blockade (on Iran), and we are going to have the toughest sanctions in history." He then vowed, "It is going to work in Iran and we are going to collapse this regime."
He further invoked some (infamous) words of President George W. Bush issued to allies in the wake of the 9/11 attacks. "You are either with us, or against us," Bessent said in the interview. "This is going to be the greatest coordinated economic isolation in the history of the world."
Such back-and-white rhetoric is very unlikely to sway the Chinese, given also that of course they know what happened next after that original proclamation by Bush - American forces got stuck in no less than two quagmires in the Middle East, Afghanistan and Iraq, in what came to be viewed cynically as 'forever wars'.
What's more as the blowback in Baghdad was pretty immediate, as a key unintended consequence of the US regime change war was the ascendancy of pro-Iran Shia politicians ruling Iraq. Beijing is all too aware of the US score card in the region, even as Washington decision-makers continue ignoring the glaring lessons of recent history.
Bessent seemed perplexed at the reaction in oil prices on Thursday, while he also said that discussions with Beijing would be best done in private:
"I think oil markets are misinterpreting what this economic pressure means," Bessent said on Thursday. Oil prices climbed to more than three-week highs on Thursday.
"We have asymmetric information, and I'm not sure why oil has popped up on this," Bessent said. "If we are doing the maximum economic pressure, then that means that likely there will not be a large-scale kinetic restart."
When asked if the U.S. could target China for doing business with Iran, Bessent said many conversations were best to have in private.
"We are confident that everyone wants the Strait (of Hormuz) reopened, and for energy prices to come back down," he continued. "Keep in mind that the Chinese get 50% (of their) energy from inside the Gulf. So it would do them a big service to get with the program."
Still, Bessent has been busy doubling-down on Trump's message shift this week (opting for an economic siege warfare 'solution' as after military strategy hasn't gone so well)...
Any remaining tie to Tehran will hasten a nation's economic oblivion, whether that tie be purposefully constructed or willfully ignored. pic.twitter.com/T3vticluAg
— Treasury Secretary Scott Bessent (@SecScottBessent) August 20, 2026Tehran has been consistently saying that is is ready for a long war, whether that come in the form of more US-Israeli bombs, or else an economic siege. Even Reuters has acknowledged the obvious in its own coverage, saying "Iran has weathered punishing economic sanctions for nearly 50 years, since the Islamic Revolution of 1979."
"Iranian Foreign Minister Abbas Araqchi called Trump's comments an attempt to divert American public opinion from domestic financial problems, including record debt and rising interest rates," the report added.
There's an additional important factor. At this point there's no way that the two key UN Security Council permanent members Russia and China will sign off on any big new anti-Iran sanctions regimen brought before the United Nations.
Closer to home, the White House risks more China blowback, especially with President Xi Jinping slated to visit the US next month. Bloomberg poses the following in Friday analysis:
“Is the White House willing to prioritize this new economic warfare campaign above its China relationship? And if it chooses to, there are serious ramifications,” said Chris Kennedy, an economic statecraft analyst at Bloomberg Economics. Kennedy said the new threats are also an “admission that the US is running out of options.”
Any decision to hit China would risk worsening tensions just weeks before Trump hosts Xi for the Chinese leader’s first visit to Washington in a decade. It also raises the threat of Chinese countermeasures that could inflict pain on the US economy ahead of November midterm elections that will hinge on pocketbook issues.
Beijing has already demonstrated a willingness to push back against Trump, most notably by announcing export restrictions on rare earths that forced the White House into a climbdown from their tariff fight.
Meanwhile, more pushback against this week's Axios report saying that large quantities of oil are moving through the Strait of Hormuz via a US Navy established 'stealth' corridor:
Why aren’t the Iranians attacking more ships transiting the Strait of Hormuz to inflict more pain on the US? Why are they so copacetic about it? According to this level-headed (run it through Google translate) analysis by Iran’s official news agency, the US is lying about the… pic.twitter.com/K6A8tgLojB
— Borzou Daragahi 🖊🗒 (@borzou) August 20, 2026On Friday, Iranian President Masoud Pezeshkian said that Iran will "under no circumstances bow to bullying." But he also struck somewhat of a conciliatory tone, perhaps signaling Iran is still open to dialogue so long as Washington is willing to compromise.
"It would be better to end the war today, now that we are strong and have dignity, with the whole world acknowledging our victory," the semi-official Iranian Students' News Agency quoted him as saying.
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Mass Casualties As Russian Drones Slam Into Mall In Zelensky's Hometown
At least 15 have been killed and 121 injured after a Friday afternoon apparent Russian drone strike on a busy shopping call in the central Ukrainian city of Kryvyi Rih, regional officials say. Casualty numbers could grow amid ongoing search and rescue efforts at the scene. Some of the injured are in serious condition.
President Zelensky quickly issued a statement on the attack which was carried out on his own hometown, calling it "cynical and despicable" and underscoring that it was "an ordinary shopping center".
Dnipropetrovsk Regional Military Administration via AFPZelensky described that the strikes came in two waves, with the second drone hitting "half an hour after the first hit and the ensuing fire, there was a second strike on the emergency services. He urged for the "the world" to respond "accordingly - with real pressure on the aggressor."
"Attacks like these are nothing less than terrorist acts," Zelensky wrote further, and pledged a strong response to the aggression.
According to The Associated Press, the same city has suffered immensely from prior attack waves stretching throughout the war:
Local administration head Oleksandr Vilkul put the death toll at 14, adding that 121 people were injured, including 22 children. He said the rescue operation was ongoing as "the rubble is being cleared."
Kryvyi Rih has been hit multiple times during the more than 4-year-old war, with one of the deadliest occurring in April 2025, when 20 people, including nine children, were killed.
Multiple videos have emerged from the scene, showing what appear to be a Geran-4 (jet-powered) drone attack...
Kryvyi Rih right now ‼️
This is the largest shopping mall in the city, Russia keeps attacking it on busy Friday afternoon.
At least 2 people reported killed, at least 12 injured. Continues strikes prevent resquers from helping the victims! pic.twitter.com/s4VJwtrktF
The Ukrainians have all the while pressured Western backers to give more anti-air missiles, especially Patriot batteries, which have been in short supply worldwide, also amid the Iran war in the Middle East.
Ukraine's own deadly long-range attacks deep inside Russian territory have continued, meanwhile.
"A Ukrainian drone attack killed one person and wounded four others when a car was struck Friday in Russia’s Belgorod region near the village of Razumnoye, local officials said, adding that two of the injured were in serious condition," AP also notes.
The death toll in Kryvyi Rih has climbed since initial reports began circulating:
🇷🇺⚡️🇺🇦 ⚠️ Russian Geran-4 jet-powered drones struck the Sun Gallery Mall in Kryvyi Rih, Ukraine's Dnipropetrovsk region, killing at least 5 civilians and injuring more than 90 others. pic.twitter.com/ayIWIt5meT
— #Inside_News (@insider_der) August 21, 2026"Earlier, Zelenskyy said a separate Ukrainian drone attack hit an oil refinery in Perm, more than 1,600 kilometers (about 995 miles) from his country’s border. Also struck was the Marinovka military airfield in Russia’s Volgograd region, he said," the report adds.
Washington is lately calling for renewed efforts to get the warring sides to the negotiating table to finally end the war. The Kremlin on Friday said it is open to 'new ideas' - though any final settlement must be in line with Putin's demands as well as "realities on the ground".
Tyler Durden Fri, 08/21/2026 - 15:05