The Trump administration has expanded its sanctions campaign against Iran by targeting dozens of companies and individuals in China and Hong Kong, while stopping short of imposing measures against major Chinese financial institutions.
According to a report by Bloomberg, the US Treasury Department announced the sanctions on Monday under what Treasury Secretary Scott Bessent described as Operation Economic Outcast, an effort aimed at cutting off Iran’s remaining financial channels.
The latest action includes Hong Kong-based businesses, reflecting a strategy Washington has also used in enforcing sanctions related to Russia’s war in Ukraine.
US authorities have previously targeted trading and shipping intermediaries in Hong Kong over alleged assistance in moving restricted goods and technology.
A major focus of the new sanctions is a procurement network allegedly operating through Hong Kong-based Sweet Ocean Industrial Ltd. The Treasury Department accused the company of helping obtain laser-optics equipment for Iran’s Malek Ashtar University of Technology, a defence-linked research institution.
Three China-based individuals — Li Na, Tian Jianbai and Zhang Limei — were also sanctioned for allegedly coordinating procurement activities. Several companies linked to the network, including Shenzhen Sweet Ocean Technology Ltd., RPT Technology Ltd., Tiany Technology Ltd. and MT Trading and Logistics HK Ltd., were also targeted.
US avoids confrontation with major Chinese banks
The Treasury Department further alleged that Hong Kong-based DEC Photonics Ltd. transferred funds to Shenzhen Sweet Ocean, while Feili Co., Minvur Ltd., Feisu Ltd. and Guska Co. allegedly helped finance purchases for Iranian end-users.
Washington also sanctioned several Chinese logistics companies that it said had connections to Iran.
However, the administration has not targeted major Chinese banks, a step that could trigger much wider economic and diplomatic repercussions.
Experts have questioned whether sanctions against relatively small private entities will significantly disrupt Iran’s networks, given the ability of businesses to create replacement companies and operate with limited exposure to the US financial system.