China rejects US call to end Iran oil exports

Published July 3, 2018 4:43pm ET



China has no plans to cooperate with President Trump’s crackdown on the Iranian oil industry, a Chinese diplomat said Tuesday.

“China is always opposed to unilateral sanctions and long-arm jurisdiction,” Foreign Ministry spokesman Lu Kang told reporters when asked if China would cooperate with the U.S. “China and Iran are friendly countries.”

“We maintain normal exchanges and cooperation within the framework conforming to our respective obligations under the international law,” he added. “This is beyond reproach.”

Secretary of State Mike Pompeo’s team is implementing an aggressive package of sanctions on Iran that are designed to isolate the regime economically. The policy is backed up by the threat of additional sanctions on countries, even U.S. allies, that persist in doing business with Iran — a tactic that has frustrated traditional friends and adversaries alike. Iran’s oil industry is a particularly high-profile target.

“Our focus is on getting as many countries importing Iranian crude down to zero as soon as possible,” Brian Hook, the State Department’s director of policy planning, told reporters on Tuesday. “We are also working with oil market participants, including producers and consumers, to ensure market stability.”

Kang dismissed that plan. “We maintain normal exchanges and cooperation within the framework conforming to our respective obligations under the international law,” he said. “This is beyond reproach.”

That could present Trump with the choice of sanctioning Chinese entities that work with Iran — something he has hesitated to do with respect to North Korea — or allowing the Communist power to flout sanctions that European allies are being pressured to honor.

“We will not hesitate to take action when we see sanctionable activity, and that is consistent with our policy of economic and diplomatic isolation against Iran,” Hook said. “Treasury and State officials, they’ve been to Europe. They haven’t been to all of Europe, but they’ve been to part of Europe, been to Asia. Those will continue. But our teams at Treasury are in very close consultation; we’re in close consultation with not just Europe but with all countries who are affected by the re-imposition of our sanctions.”

But Hook demurred when asked specifically about sanctioning Chinese entities. “Our diplomacy has been focused around mostly consultations with Europe, France, and Germany,” he said. “We believe that China and Russia and the other countries who are part of the Iran deal are tired of the terrorism that Iran is causing.”