US sanctions 9 mainland China and Hong Kong entities over alleged Iran military links
In this photo released by Xinhua News Agency, Chinese Foreign Minister Wang Yi, second right, talks to his Iranian Counterpart Abbas Araghchi, first from left, during a meeting in Beijing, May 6. AP-Yonhap
The United States has sanctioned nine mainland Chinese and Hong Kong companies and individuals, accusing them of helping Iran's military.
The decision, which risks complicating Donald Trump's visit to China next week, was announced on Friday by the Treasury and State departments.
A Treasury Department press release said those targeted were "enabling efforts by Iran's military to secure weapons" or securing "raw materials with applications in Iran's Shahed‑series unmanned aerial vehicles and ballistic missile program".
The Treasury sanctions target five firms and one individual. They include the mainland China-based Yushita Shanghai International Trade Company, which is accused of helping Tehran to buy arms.
Meanwhile, Hitex Insulation Ningbo Company is accused of supplying millions of dollars' worth of materials used in ballistic missile research and flight test launches. Its legal representative, Li Genping, was also sanctioned.
Hong Kong-based HK Hesin Industry Company is accused of working as an intermediary in procurements, while Mustad Limited, also based in the city, is accused of helping Iran's Islamic Revolutionary Guard Corps to buy arms.
Separately, the State Department said on Friday that it had sanctioned four companies, including three mainland Chinese firms accused of providing satellite imagery that enabled Iranian strikes against U.S. forces in the Middle East.
They include Chang Guang Satellite Technology, China's first commercial satellite company. It is accused of collecting satellite imagery of U.S. and allied military facilities on behalf of Iran.
The two other Chinese companies also accused of providing satellite imagery to Iran are Beijing-based The Earth Eye and Hangzhou-based geospatial intelligence firm MizarVision.
The State Department alleged that MizarVision had published open-source images detailing US activities during the war.
The sanctions could effectively block the Chinese companies from accessing the dollar-denominated financial mechanisms required to trade, invest or move money globally.
The South China Morning Post has contacted the Chinese embassy in Washington and the Ministry of Foreign Affairs in Beijing for comments.
The sanctions come just days before Trump's scheduled visit to China, the first by a U.S. leader since 2017.
The visit will last from May 14 to 15, according to the White House. Beijing has yet to confirm the visit.
As the dates approach, the war in Iran has emerged as a new point of U.S.-China friction.
Senior Trump administration officials, including Treasury Secretary Scott Bessent and Secretary of State Marco Rubio, have intensified pressure on Beijing to leverage its influence over Iran to secure a ceasefire.
But Beijing has struck a defiant tone, while consistently calling for US-Iran peace talks.
On May 2, the Ministry of Commerce ordered companies operating in China to disregard US sanctions on five Chinese refiners, announced in April over their dealings in Iranian oil.
It was the first time Beijing invoked blocking measures introduced in 2021 to protect its companies from foreign laws it considers unfair.
However, Bloomberg reported on Thursday that China's financial watchdog, the National Financial Regulatory Administration, had advised the country's largest banks to temporarily suspend new loans to the five refiners.
The targeted mainland companies did not immediately respond to SCMP's request for comment.
Hong Kong government rejects 'unilateral sanctions'
In a response to SCMP, a Hong Kong government spokesman said authorities had been "fully and vigorously" enforcing sanctions imposed by the United Nations Security Council.
"We do not implement unilateral sanctions imposed by other countries that constitute a flagrant violation of the international order based on international law and the basic norms of international relations underpinned by the purposes and principles of the Charter of the United Nations," the spokesman said.
He added that the government maintained a robust mechanism for implementing Security Council resolutions, including denying entry to designated vessels and inspecting suspicious Hong Kong-based companies.
"The effectiveness of our work has been well respected and recognised by our trading partners. We have nothing to add in response to the so-called 'sanctions' imposed by the United States recently."
A search on Hong Kong's Companies Registry showed all three directors of the sanctioned firms based in the city had mainland Chinese backgrounds.
All three were listed as active on the Companies Registry as of noon on Saturday.
HK Hesin was the newest company, having been incorporated last December and operating from Cheong Tai Commercial Building in Mong Kok.
Its director and sole shareholder was listed as Sun Hejia. The shareholder address was in Tianjin.
Mustad Limited, meanwhile, was incorporated in October 2024, and was based in a commercial building in Sham Shui Po.
Its director was listed as Liu Boyu, and his bio included details for a mainland Chinese passport, while its sole shareholder was a Peruvian by the name of Patricia Erica Narcizo Moreno.
A website matching the name Mustad Limited said the company "leverages its global network and innovative strategies to ensure sustainable supply and economic resilience in energy, minerals, and agriculture worldwide".
It claimed to be active in 50 countries but there was no address listed on the website, and much of the text appeared to be placeholder.
AE International was the oldest company on the list, having been registered in March 2018. It is based in Maxgrand Plaza in San Po Kong.
Its director and sole shareholder was listed as Zheng Lulu. While there was no passport information, the shareholder address listed was in Shanghai.
The Companies Registry showed three other firms listed with a director with a matching name in English and Chinese, but it was not immediately clear if it was the same Zheng Lulu as the director of AE International.
The SCMP has reached out to Mustad Limited via its website. The other two were not immediately available for comment.
The Hong Kong Chief Executive's Office has also been contacted for comment.
Read the article at SCMP.