The United States has sanctioned a new group of companies and individuals linked to China and Hong Kong accused of helping Iran secure drone materials and missile-related components, raising new tensions days before US President Donald Trump’s state visit to China.
US Department of the Treasury said On May 8, its Office of Foreign Assets Control (OFAC) targeted 10 individuals and companies across the Middle East, Asia and Eastern Europe as part of its “Economic Fury” campaign against Iran.
The campaign aims to disrupt networks that Washington says help Iran’s military provide weapons and raw materials for its Shahed series unmanned aerial vehicles and ballistic missiles. The US State Department simultaneously designated four entities for their links to Iran’s conventional weapons activities.
Names related to China and Hong Kong fall into several broad categories:
- Aerospace-grade materials: Hitex Insulation Ningbo Co Ltd and its legal representative Li Genping were accused of supplying, or attempting to supply, millions of dollars worth of carbon fiber, honeycomb fabric and other aerospace-grade materials to Iran-linked company Pishgam Electronic Safeh.
- Procurement support: Yushita Shanghai International Trade Co Ltd, AE International Trade Co Ltd of Hong Kong and HK Hesin Industry Co Ltd were charged with supporting procurement efforts for the Center for Progress and Development of Iran (CPDI), the latter name of the US-designated Center for Technological Innovation and Cooperation (CITC).
- Arms-related financing: Mustad Ltd was accused of helping to facilitate financial transactions related to the Islamic Revolutionary Guard Corps’ procurement of millions of dollars worth of weapons.
- Satellite imagery: Meentropy Technology Hangzhou Co Ltd (MizarVision) and The Earth Eye Co (Beijing Mumei Starry Sky Technology Co Ltd) were accused of providing satellite imagery support for Iranian military activity.
The sanctions against two Chinese satellite imaging firms came against the backdrop of an earlier satellite claim that Beijing had denied.
Citing leaked Iranian military documents, the Financial Times reported on April 15 that Iran had secretly purchased a Chinese-built satellite known as the TEE-01B, giving the Islamic Revolutionary Guard Corps Air Force a new capability to target US military bases across the Middle East. The satellite was launched by China and later acquired by Iran in late 2024.
Sanctions of May 8 He did it does not cover other recent reports about alleged shipments of rocket fuel from China to Iran. The Washington Post reported in early March that two cargo ships owned by a sanctioned Iranian shipping company had left a Chinese chemical storage port carrying suspected missile fuel precursors and were headed for Iran.
Telegraph reported on April 3, five ships carrying sodium perchlorate, a precursor used in solid rocket fuel, were identified in or near Iranian ports. The reported quantity was said to be enough for hundreds of ballistic missiles.
Trump’s visit to Beijing
On April 24, OFAC sanctioned Hengli Petrochemical (Dalian) Refinery Co Ltd for allegedly buying Iranian crude, while also targeting around 40 shipping firms and ships accused of moving Iranian oil through a shadow fleet.
The May 8 action goes further because it claims support for Iran’s arms supply chain, not just its oil revenues. This makes the case more sensitive after Trump warned on April 8 that any country supplying Iran with military weapons would face a 50% tariff on all goods sold to the US, with “no exemptions or exceptions.”
Time has sharpened the political signal. Trump will visit China from Wednesday to Friday for talks with Chinese President Xi Jinping. Iran, Taiwan, trade and export controls are expected to be among the most sensitive items on the agenda.
On Monday, Beijing confirmed for the first time Trump’s upcoming trip to China.
“This will be the first visit to China by a US president in almost nine years. President Xi will have in-depth exchanges of views with President Trump on key issues concerning China-US relations and world peace and development,” Chinese Foreign Ministry spokesman Guo Jiakun said. said at a regular press conference on Monday.
Guo said the diplomacy of heads of state was important in guiding China-US relations, adding that Beijing was willing to work with Washington to expand cooperation, manage differences and provide more stability in an unstable world.
But some Chinese commentators said the sanctions had cast a shadow over the summit.
“The United States seems to believe that, with Trump’s visit to China already planned, it can add sanctions to boost its own goods, whether China is happy about it or not.” says a columnist based in Shandong using the pen name “Xiaoliu”.
“However, China’s swift and strong legal countermeasures, along with Iran’s confident response, show that the other side has no intention of following Washington’s script,” she wrote, referring to the countermeasures as Beijing’s latest move to stop domestic firms and banks from enforcing US sanctions against China’s “backlash”.
“Sanctions and counter-sanctions have become a normalized tool in the China-US competition,” she says. “At such a sensitive moment, Washington’s decision to play this card again raises a question: Is this a smart calculation or an arrogant misjudgment that could backfire? When Trump’s plane lands in Beijing, will the shadow cast by these sanctions hang over the negotiating table?”
“This is not the first time the US has taken such unilateral action on the eve of high-level exchanges.” says a Guangdong-based writer surnamed Chen. “Prior to past bilateral meetings, Washington has often used sanctions or tough rhetoric to create leverage. This time, using Iran-related issues to sanction Chinese entities reflects the same game mentality.”
He says this approach will not achieve its intended purpose and will instead undermine the foundation of mutual trust. If Washington really wants to use the visit to improve bilateral relations, he adds, it should show sincerity rather than pressure in its talks.
The sanctions come as Washington and Beijing explore a potential trade package for the summit. Reuters reported On May 7, the two sides are working on a proposed Board of Trade mechanism to identify products that could expand bilateral trade without weakening national security or critical supply chains — including potential Chinese purchases of U.S. crops, Boeing jets and U.S. energy such as coal, oil and natural gas.
If Trump can secure Chinese commitments to buy more American products, it could affect Republican efforts to retain control of the House and Senate in November’s midterm elections, according to some observers.
New security framework
The regional security argument has gained traction as the US-Iran ceasefire remains fragile. On April 8, Washington and Tehran agreed to a two-week ceasefire brokered by Pakistan, which was later extended as negotiations continued. However, after several rounds of direct and indirect talks through Pakistan, Trump has yet to secure what Washington wants most: the removal or strong neutralization of Iran’s stockpiles of enriched uranium.
On April 23, Chinese Foreign Minister Wang Yi met with Iranian Foreign Minister Seyyed Abbas Araghchi in Beijing. Wang said China and Iran have supported each other in recent years, deepened political trust, expanded practical cooperation and worked together against unilateralism and bullying, making the strategic importance of their ties more prominent.
On May 6, Wang met Araghchi again, where the Iranian side briefed China on the recent Iran-US negotiations and Tehran’s next steps.
Araghchi said that political crises cannot be resolved by military means and that Iran will protect its sovereignty and dignity while continuing to seek a comprehensive and lasting solution through peaceful negotiations. He said Iran trusts China’s role in preventing further escalation and expects Beijing to continue promoting peace.
“China is a reliable strategic partner of Iran,” Wang told Araghchi during the meeting. “China is willing to consolidate and deepen political mutual trust with Iran, maintain and strengthen high-level exchanges, deepen mutually beneficial cooperation in various fields, and continue to advance the China-Iran comprehensive strategic partnership.”
“Before Araghchi left for Beijing on May 5, the US was ready to respond.” writes Jiangsu-based writer Jingting Guoji, who uses a pen name. “If China and Iran had reached a military deal, Washington could have moved quickly to intercept arms shipments, expand sanctions or pressure China through its allies. But Araghchi was smart. He didn’t ask China for weapons. He asked China to help build a new security framework in the Middle East.”
“Iran showed diplomatic wisdom by not falling into the ‘military confrontation’ trap set by the US,” he says. “Instead, it dealt with Washington on a political and diplomatic level, using the balance between the great powers to gain greater strategic space.”
He says Wang’s response showed China’s stance and determination in supporting a new security framework for the Middle East.
China has, in recent years, promoted a new security framework in the Middle East as part of its broader regional diplomacy. The idea involves balancing relations with major regional powers, including Saudi Arabia, Pakistan, Turkey and Egypt, rather than relying on a US-led security order.
“Pakistan played a smart move by using its role as a broker to deceive the Trump administration,” Hong Kong-based pro-Beijing Flamingwheels. said in a comment.
He said that Pakistan, at the end of April, passed it Territorial Transit Goods Ordinance 2026 to open six dedicated land routes for third country goods to move through Pakistan to Iran, bringing new logistics activity and economic benefits to local communities. He also said that the new land routes will give the China-Pakistan Economic Corridor and the Gwadar port a new strategic role at a time of crisis.
Chinese media reports said the US military blockade of Iranian ports had been in place for nearly a month, but China could still send about 100 to 150 containers to Iran by rail per week. The trains depart from Xi’an and travel through Kazakhstan and Turkmenistan before reaching Tehran, although the volume is only about 5% of what Iran could have received by sea before the blockade.
Read: Trump-Xi summit to weigh Iran oil, Taiwan and US exports
Follow Jeff Pao at X at @jeffpao3
