US sanctions China, Hong Kong firms over Iran drone and missile supplies

The United States has announced fresh sanctions against 10 individuals and companies accused of helping Iran obtain material and parts used in drones and ballistic missiles, as per reports. Several of the sanctioned entities are based in China and Hong Kong. 

According to reports, the US Treasury Department said these companies were involved in supplying components connected to Iran’s Shahed drones and missile programmes. The move comes at a time when tensions between the US and Iran remain high and efforts to end the ongoing conflict have remained stalled. 

The Treasury Department reportedly said the US is prepared to take further economic action to weaken Iran’s military production system and stop the country from rebuilding its weapons capabilities. Officials also warned that foreign businesses and financial institutions supporting Iran could face similar action in the future.

Among the companies named in the sanctions list were China-based Yushita Shanghai International Trade Co Ltd and Hitex Insulation Ningbo Co Ltd. Hong Kong-based firms HK Hesin Industry Co Ltd and Mustad Ltd were also included. Dubai-based Elite Energy FZCO and Belarus-based Armory Alliance LLC were accused of acting as part of Iran’s international procurement network.

Iran-based Pishgam Electronic Safeh Co was also sanctioned for allegedly helping procure motors used in drones.

Security experts reportedly said the sanctions are aimed at limiting Iran’s ability to threaten shipping routes and regional allies, especially around the Strait of Hormuz, an important global oil transport route.