US slaps new sanctions on China, HK firms over ‘weapons procurement’ for Iran

WEB DESK: The United States Treasury has announced a fresh round of sanctions targeting a network of individuals and companies based in China and Hong Kong, accusing them of facilitating weapons procurement and illicit financial transfers for Iran’s military activities.

The latest restrictions aim to disrupt operations supporting the Islamic Revolutionary Guard Corps (IRGC) and Iran’s Ministry of Defence and Armed Forces Logistics (MODAFL).

According to US officials, the targeted network includes procurement facilitators, front companies, and entities deeply integrated into Iran’s clandestine banking system.

US Treasury Secretary Scott Bessent stated that the action is a pivotal component of Washington’s ongoing "Economic Fury" campaign.

The initiative is designed to dismantle Tehran’s military acquisition channels, restrict its access to international revenue, and intensify economic pressure on the Iranian government.

Targeting clandestine networks

The Treasury Department noted that the designated entities have played a critical role in sourcing dual-use components and advanced technology necessary for Iran’s ballistic missile and drone programmes.

By utilising front companies in Hong Kong and mainland China, these networks allegedly bypassed existing international sanctions to move millions of dollars through the global financial system.

"Iran relies on sophisticated networks in third countries, particularly China and Hong Kong, to disguise the origin of its funds and secure critical parts for its military expansion," Bessent said in a statement.

He added that the US remains committed to exposing and shutting down these covert financial pipelines wherever they operate.

As a result of the sanctions, all property and interests in property of the designated targets that are in the United States or in the possession or control of US persons must be blocked and reported to the Treasury’s Office of Foreign Assets Control (OFAC).

Furthermore, non-US financial institutions that facilitate significant transactions for these entities risk being cut off from the American financial system.

Geopolitical friction

The move is expected to further strain relations between Washington and Beijing, which has consistently opposed unilateral US sanctions.

Beijing has previously urged the US to halt its "long-arm jurisdiction" and stop penalising Chinese enterprises interacting with Middle Eastern nations, defending its trade relations as legitimate and compliant with international law.

Observers note that the "Economic Fury" campaign signals an escalation in Washington’s strategy to choke off funding to Tehran amid heightened regional tensions.

Analysts believe the focus on Hong Kong and Chinese intermediaries highlights the growing difficulty Western powers face in enforcing isolation containment strategies without confronting major economic counterparts.

Tehran has yet to officially respond to the latest measures, though it has historically dismissed US sanctions as unlawful and ineffective economic warfare.

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