Dear Focus Reader,

This week, the U.S. announced sweeping new sanctions against Iran and countries that trade with it, as the conflict enters its sixth month. The measures target 60 individuals, entities and vessels, including at least 20 Chinese individuals and technology firms, as well as networks involved in Iranian oil shipments and financial transactions. Washington also warned that countries continuing to trade with Iran could face penalties under its expanded secondary-sanctions policy.

Beijing has rejected the unilateral U.S. sanctions, saying China-Iran cooperation is conducted within international law and that it will take "all necessary measures" to protect its rights and interests. Diplomatic efforts involving Iran and regional governments continue to focus on preventing further escalation and reopening the Strait of Hormuz, where some commercial traffic has resumed but remains well below pre-conflict levels.

The new sanctions add further tension between Washington and Beijing, as the two countries prepare for a tentative meeting between Presidents Donald Trump and Xi Jinping next month.

Meanwhile, Chinese Foreign Minister Wang Yi and U.S. Ambassador David Perdue met in Beijing this week, where they discussed strengthening communication and preparing for the next phase of engagement. They also addressed trade issues ahead of the Xi-Trump meeting, including the future of the current bilateral trade truce. Additionally, Wang called on the two countries to "remove disruptions and overcome obstacles" to high-level exchanges, and Perdue emphasized that they are "working together to achieve a constructive relationship of strategic stability with fairness and reciprocity."

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