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U.S. and Chinese officials meet to plan Xi's Washington visit despite secondary sanction warnings

Diplomats advanced preparations for a state visit while U.S. officials warned of potential sanctions against Chinese banks handling Iranian oil transactions.

The short version

  • U.S. Ambassador David Perdue met with Chinese Foreign Minister Wang Yi in Beijing to prepare for President Xi Jinping's upcoming visit to Washington.
  • President Donald Trump and Treasury Secretary Scott Bessent warned that Chinese banks processing transactions for Iranian oil could face secondary sanctions.
  • Beijing responded by stating it would take necessary measures to protect its interests while continuing high-level dialogue.
  • Analysts suggest the trade truce remains intact and expect limited action against major Chinese financial institutions.

Key facts

  • U.S. Ambassador David Perdue met with Chinese Foreign Minister Wang Yi and three other Chinese officials in Beijing to discuss preparations for President Xi Jinping's visit to Washington.[CNBC]
  • U.S. President Donald Trump indicated he could sanction Chinese banks as part of broader measures targeting Iran.[CNBC]
  • U.S. Treasury Secretary Scott Bessent warned that Chinese institutions facilitating the conversion of Iranian oil into revenue would face sanctions.[CNBC]
  • China's foreign ministry stated it would take all necessary measures to protect itself against U.S. secondary sanctions.[CNBC]

What remains uncertain

  • It remains uncertain whether the U.S. will execute specific secondary sanctions against major Chinese financial institutions or if the trade truce will be affected.[CNBC]

Sources