China warned Monday that sanctions and pressure tactics do not resolve disputes, vowing to take necessary steps to safeguard its interests as the US prepares a sweeping package of economic penalties targeting Iran and its trading partners.

Chinese Foreign Ministry spokesman Lin Jian told reporters in Beijing that sanctions and pressure tactics “lead to escalation,” stressing that “escalation serves no one’s interests.”

“China calls on parties to act rationally and with restraint and avoid taking any measures that may further escalate tensions or deal a blow to global economic growth and financial stability,” Lin said.

He was responding to questions about the Trump administration’s move to impose sanctions on Tehran and its trading partners amid the ongoing war between the US and Iran.

Read: China urges South Korea not to take sides, blames US policy for Korea tensions

Tehran has condemned the sanctions as “economic terrorism” and said they are “bound to fail.”

Lin urged the warring parties to “return to the right track of political settlement through dialogue and negotiations at an early date.”

China “will closely watch relevant developments and do what is necessary to protect our legitimate rights and interests,” he stressed.

US Treasury Secretary Scott Bessent has warned third-party countries against continuing commercial ties with Tehran, urging international buyers, particularly China, the world’s largest importer of Iranian crude, to halt purchases or risk severe secondary sanctions and financial penalties.