China to continue Iran trade despite new US sanctions

China denounced new US sanctions targeting Iran's oil and financial sectors as "long-arm jurisdiction" on Monday and vowed to continue its bilateral trade with the Islamic republic.

The measures, which took effect on Monday, follow US President Donald Trump's decision to abandon a multi-nation nuclear deal with Tehran, which he said was flawed and does not adequately constrain Iran's destabilising behaviour in the Middle East.

The sanctions aim to significantly cut Iran's oil exports -- which have already fallen by around one million barrels a day since May -- and cut it off from international finance.

"China opposes unilateral sanctions and long-arm jurisdiction," foreign ministry spokeswoman Hua Chunying told a regular press briefing.

"We believe that China's normal cooperation (with Iran) within international law is legal and legitimate, and this shall be respected."