In a bold move, China has directed its businesses to ignore US sanctions imposed on Iran, representing a significant escalation in the ongoing tensions between the two superpowers. This decision comes as President Donald Trump prepares for a meeting with Chinese Chairman Xi Jinping, where the stakes are high due to the current geopolitical climate. The sanctions were recently imposed by the Trump Administration on five Chinese refineries for purchasing Iranian oil, which Beijing has rejected. The Chinese government has described the US sanctions as an abuse of power and has activated its 2021 Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation. This allows Chinese firms to sue those complying with foreign sanctions and provides state compensation for losses incurred. Analysts suggest that this move could alter the balance of power in the region, especially as Iran begins to demand payments for oil in yuan, potentially undermining the US dollar's dominance in global trade. As Trump faces legal and diplomatic challenges, including a Supreme Court ruling against his tariffs, the upcoming talks in Beijing could be pivotal in shaping future US-China relations.