Trump Praises China for Remaining ‘Relatively Inactive’ on Hormuz Crisis

Donald Trump praised China on Monday for staying "relatively inactive" during the prolonged closure of the Strait of Hormuz, weeks before Chinese President Xi Jinping's expected visit to Washington, according to a new report. "He's been relatively inactive by comparison to what he could have been," Trump told reporters, adding that he has "a lot of respect" for Xi and believes it's mutual.

The remarks landed the same day Treasury Secretary Scott Bessent indicated Chinese banks may not be targeted under Washington's "Economic D-Day" sanctions campaign against Iran, first launched on Aug. 24.

That launch came with tougher language. Asked then whether Chinese banks could be hit, Bessent said "no one is above the reach of U.S. sanctions" and warned that any institution "part of the ecosystem that turns Iranian oil into money" would be targeted. China buys roughly 80% of Iran's oil exports.

Three weeks on, no major Chinese bank has been named. Treasury's actions have instead fallen on smaller Hong Kong entities: a shipper and, on Aug. 28, Kameng Trading Ltd, a Tsim Sha Tsui-registered firm accused of laundering money for a sanctioned Iranian exchange house. Fortune reported this week that the campaign's biggest sanctions so far have hit "a tanker and a Hong Kong shipper — not the banks tied to the U.S. financial system."

The gap matters for Hong Kong's exchange. Bank of China (3988.HK), ICBC (1398.HK) and China Construction Bank (0939.HK) all carry mainland exposure to Iran-linked trade flows that has kept a standing sanctions-risk discount on the stocks since Bessent's Aug. 24 announcement. Each fresh round targeting smaller Hong Kong firms rather than the banks themselves has so far left that discount unresolved rather than removed.

IBT HK has previously reported on the pattern of Hong Kong firms being sanctioned while a major-bank action remained pending. Monday's comments from Trump are the clearest signal yet from the White House itself that the softer approach toward Beijing's banks is intentional rather than a delay.

Bessent is currently hosting G20 finance ministers in Asheville, North Carolina, through Tuesday, where he has focused public remarks on global growth rather than new Iran measures. Xi's visit to Washington remains set for the coming weeks, with no Chinese financial institution added to Treasury's sanctions list since the campaign began.