While the United States is now urging foreign companies to wind down their operations in Iran, China appears to be doing the opposite. When asked whether China would order its companies to withdraw from Iran to avoid U.S. sanctions, the Chinese Foreign Ministry spokesman indicated that Beijing might defy the Trump administration. Rather than trading in U.S. dollars, China and Europe could use their own currencies, for example. There are also plans to create separate funds and banks the United States would be unable to punish for having ties to Iran. Some analysts have even suggested that Chinese entities could act as intermediaries for European companies that want to continue trading with Iran but fear violating U.S. sanctions.

Source: Washington Post May 11, 2018 11:32 UTC