by Jerry Dunleavy
China has been trying to prop up its Iranian partner amidst devastating U.S. strikes against the theocratic regime. It remains to be seen if this will be a central topic for Trump and Xi as they meet in China.
The Trump Administration has been leveling sanctions
against an array of Chinese companies profiting off of illicit Iranian
oil sales and propping up the Iranian military ahead of a high-stakes
meeting between President Donald Trump and Chinese leader Xi Jinping in
Beijing this week.
The U.S. naval blockade
has stopped Iranian vessels from making it to China and elsewhere to
sell their sanctioned oil, while the State and Treasury departments have
hit Chinese companies with significant sanctions over their roles in
the illicit Iranian oil market and in helping provide the Islamic
Revolutionary Guard with dual-use technologies and with satellite
intelligence that could be used to target U.S. forces in the region.
For years, China has relied upon
exploiting U.S. sanctions to import steeply discounted oil from pariah
states such as Iran and Venezuela to fuel both its economy and military
buildup. Trump’s interventions against each have upended this lucrative
arrangement, and his administration has recently sought to tighten the
screws further to limit China’s access to sanctioned Iranian oil and to
call out Chinese firms assisting the Iranian regime militarily.
The Chinese Foreign Ministry confirmed Monday that Trump will be visiting China on Wednesday through Friday.
Trump was asked at the White House on Monday whether the war with Iran had changed the Xi meeting agenda.
“Look, I have a great relationship with President Xi," he
responded. "We’re doing a lot of business, but it is smart business. ...
I have a great relationship with President Xi, and I think you can see
that with the fact that in [the Strait of] Hormuz – they get a big
percentage, 40% of their oil, from Hormuz – there’s been no ships coming
in, no nasty ships coming in.”
Trump also said of Xi: “I respect him a lot, and hopefully he respects me. He didn’t respect our previous government.”
State and Treasury spotlight CCP assistance to the Iranian regime
The State and Treasury departments have put the spotlight
on Chinese companies that have been helping the Iranian regime during
Operation Epic Fury, the United States' military offensive against Iran
that began Feb. 28.
State Department spokesman Thomas Pigott announced
in late April that “the United States is taking decisive action to
disrupt Iran’s illicit oil trade, the Iranian regime’s primary revenue
streams that fund its terrorism and destabilization of the region.”
“The Department of the Treasury imposed sanctions today on a
major, independent Chinese refinery and nearly 40 other targets –
vessels and their respective owners or managers – that serve as critical
lifelines for Iran’s oil exports,” he said. “This action cuts revenue
streams that fund the regime’s destabilizing activities across the
Middle East. The Administration’s maximum pressure campaign will hold
Tehran accountable for its regional aggression and threats to American
interests.”
At the same time, the Treasury Department said
that its Office of Foreign Assets Control had sanctioned the
“China-based independent teapot refinery Hengli Petrochemical Refinery”
and argued that such small independent refineries in China "continue to
play a vital role in sustaining Iran’s oil economy, and Hengli is one of
Iran’s largest customers for crude oil and other petroleum products,
having purchased billions of dollars’ worth of Iranian petroleum.”
Pigott announced
in early May that the State Department had sanctioned “several
entities, an individual, and a vessel involved in the trade of Iranian
petroleum, petroleum products, and petrochemical products” and said that
“this action targeted Qingdao Haiye Oil Terminal,” which was “a
China-based petroleum terminal operator that has imported tens of
millions of barrels of sanctioned Iranian crude oil” since the issuance of a national security presidential memorandum by Trump in February 2025.
“Haiye has enabled the flow of billions of dollars to
Tehran that has relied on sophisticated evasion schemes, accepting cargo
from vessels conducting illicit ship-to-ship transfers with sanctioned
vessels,” Pigott said.
The Chinese Ministry of Commerce responded
by saying that the U.S. sanctions, issued “on the grounds of their
participation in Iranian oil transactions, shall not be recognized,
implemented, or complied with” by the Chinese government. The ministry
also said it was flaunting the sanctions “to safeguard national
sovereignty, security, and development interests, and to protect the
legitimate rights and interests of Chinese citizens, legal persons, and
other organizations.”
A reporter last week asked
Secretary of State Marco Rubio what his reaction was to the Iranian
foreign minister visiting China, and also asked him to address Beijing
instructing its firms to ignore U.S. sanctions.
“Well, I’ll direct you to Treasury on that front," he said.
"There are options that we have. If you ignore our sanctions, you’re
going to face secondary sanctions. And I don’t have an announcement for
you on that today, but we don’t do these things for symbolic purposes."
He also said: “On the first point about the visit, it’s
fine. I hope the Chinese tell him what he needs to be told, and that is,
'What you are doing in the straits in causing you to be globally
isolated. You’re the bad guy in this. You guys should not be blowing up
ships. You should not be putting mines, you should not be holding
hostage the – trying to hold hostage the global economy.'”
Rubio then announced
Friday that the U.S. was imposing sanctions on 11 entities and three
individuals based in Iran, China and elsewhere that were “involved in
Iran’s efforts to acquire or use arms and related material.”
He said the sanctions targeted “several China-based
entities providing satellite imagery to enable Iran’s military strikes
against U.S. forces in the Middle East” and that “we are designating
entities and individuals enabling efforts by Iran’s military to secure
weapons, as well as raw materials with applications in Iran’s ballistic
missile and unmanned aerial vehicle programs.”
“Today’s action holds China-based entities accountable for
their support to Iran,” Rubio also said. “The United States will take
all necessary action at its disposal to target third-country entities
and individuals aiding Iran’s military and defense industrial base.”
The related State Department fact sheet
states, “The supply of satellite imagery of U.S. facilities in the
Middle East to Iran threatens American and partner personnel” and that
the U.S. “will continue to take action to hold China-based entities
accountable for their support to Iran and ensure Iran cannot
reconstitute its proliferation-sensitive programs following Operation
Epic Fury.”
The Trump Administration said it was designating the
Chinese companies “for having provided to Iran any technical training,
financial resources or services, advice, other services, or assistance
related to the supply, sale, transfer, manufacture, maintenance, or use
of arms and related materiel.”
The State Department said that “Meentropy Technology
(Hangzhou) Co. Ltd (MizarVision)” is a “China-based geo-spatial
intelligence firm that published open-source images detailing U.S.
military activity during Operation Epic Fury.”
In addition, the department said that Earth Eye is also a
“China-based entity that provided satellite imagery to Iran during
Operation Epic Fury.”
The U.S. federal agency said it was also sanctioning
companies “for having engaged, or attempted to engage, in any activity
that materially contributes to, or poses a risk of materially
contributing to, the proliferation of arms or related materiel or items
intended for military end-uses or military end-users, including any
efforts to manufacture, acquire, possess, develop, transport, transfer,
or use such items, by the Government of Iran.”
The State Department specifically named Chang Guang
Satellite Technology as a “China-based commercial satellite company that
has collected satellite imagery of U.S. and allied military facilities
to support Iranian imagery requests during Operation Epic Fury.” The
department added that Chang Guang has previously provided satellite
imagery to the Iran-backed Houthi terrorist group.
“While the surviving IRGC leaders are trapped like rats in a
sinking ship, the Treasury Department is unrelenting in our Economic
Fury campaign,” Treasury Secretary Scott Bessent said when recently announcing
his department's actions. “Under President Trump’s decisive
leadership, we will continue to act to Keep America Safe and target
foreign individuals and companies providing Iran’s military with weapons
for use against U.S. forces.”
The Treasury Department said that “China-based Yushita
Shanghai International Trade Co. Ltd. (Yushita) is a facilitator for the
Center for Progress and Development of Iran (CDPI) – the latest name of
Iran’s U.S.-designated Center for Innovation and Technology Cooperation
(CITC), which coordinates Iranian technology acquisition efforts” and
alleged that “CITC has sought to purchase weapons, including
man-portable air-defensive systems (MANPADS), from China.”
The Office of Foreign Assets Control issued additional
sanctions against the “Iran-based Pishgam Electronic Safeh Company
(PESC)” and said the company had “procured thousands of servomotors with
one-way attack UAV applications, which have been recovered in downed
Shahed-136 UAVs, for Iran’s IRGC Aerospace Force Self Sufficiency Jihad
Organization.”
The Treasury Department said there was a China connection,
arguing that the “China-based Hitex Insulation Ningbo Company Limited
(Hitex) has supplied – or attempted to supply – millions of dollars’
worth of carbon fiber, honeycomb fabric, and other raw aerospace‑grade
materials to PESC, ultimately for the IRGC ASF SSJO.”
The Chinese Foreign Ministry responded on Monday with anger toward the U.S. actions.
“China firmly opposes illicit unilateral sanctions that
have no basis in international law or the authorization of the UN
Security Council,” ministry spokesperson Guo Jiakun said.
“The Chinese government always asks Chinese companies to operate in
accordance with laws and regulations. We will firmly protect Chinese
businesses’ legitimate rights and interests. As to the Iran situation,
we have made clear our position on many occasions. The pressing priority
now is to prevent by all means a relapse in fighting, rather than
exploit the situation to throw mud at other countries.”
China quietly plays key role in assisting the Iranian military
The U.S.-China Economic and Security Review Commission had assessed
in March that “China enables Iran to mitigate global sanctions through
trade and financial networks, technology transfers, and dual-use trade.
Chinese banks, front companies, and intermediary firms facilitate oil
transactions, the shadow fleet that transports Iranian oil, access to
controlled technologies that support Iran’s missile and drone programs,
and money laundering that enables it all.”
The Small Wars Journal similarly argued
that month that “while Iran remains the primary military actor
confronting U.S. and Israeli forces on the battlefield, China’s
technological and intelligence support appears to play an important
enabling role in strengthening Tehran’s operational effectiveness.”
The news outlet also said: “Access to advanced satellite
intelligence, the BeiDou navigation system, modern radar technologies,
and electronic warfare expertise can significantly enhance Iran’s
ability to conduct more precise missile and drone strikes while
improving its capacity to defend against sophisticated air campaigns.”
The Wall Street Journal wrote an article titled “China Is Still Supplying Drone Factories in Iran, Russia Despite U.S. Sanctions” in early May.
The news outlet reported that “the open wartime marketing
by a small, obscure Chinese company points to a growing source of
frustration for Washington: its struggle to staunch the flow of
so-called dual-use goods—items with both civilian and military uses—to
adversaries.”
“Chinese companies are shipping hundreds of containers
filled with such goods to Russia and Iran, according to Chinese customs
data. Items on the packing lists range from engines to computer chips,
fiber-optic cables, and gyroscopes,” the outlet also reported. “For a
time, Chinese exporters intentionally mislabeled some shipments to skirt
U.S. and European sanctions, but in many instances they no longer
bother, according to former senior Treasury Department officials and
weapons analysts.”
Jiakun said Monday
that “China’s position on the Iran situation is consistent. We will
continue playing a positive role in promoting peace talks and bringing
about an end to the conflict.”
Trump says the ceasefire with Iran is on 'life support' ahead of China trip
Trump said from the Oval Office on Monday that the fragile ceasefire with the Iranian regime was on “life support.”
The president also said that an Iranian peace deal proposal “was just unacceptable” and called it a “stupid proposal.”
“Iran has been defeated militarily, totally. They have a
little left they probably built up during this period of time. We’ll
knock that out in about a day,” Trump said.
The president repeatedly insisted that “I have a plan” to
continue to box in the Iranian regime. “It’s a very simple plan. Iran
cannot have a nuclear weapon, and they won’t have a nuclear weapon.”
Trump also sought to push back on any sentiments that he
might not be willing to see the conflict with Iran through to a U.S.
victory.
“They didn’t want to believe it. They think that,' well
I’ll get tired of this or I’ll get bored or I’ll have some pressure,”
Trump said of Iran. “But there is no pressure, there is no pressure at
all. We’ll have a complete victory.”
Trump seemed to reveal that the Iranians had agreed to hand
over their enriched uranium stockpile, before saying that Iran had
already backtracked on this.
“Iran told me very strongly, because they intend to give us
the nuclear dust, as I call it," he said. "They told me: number one,
you’re getting it, but you’re going to have to take it out, because the
site was so obliterated that there’s only one or two controls in the
world that can get it – it’s so deep and got hit so hard that there is
no way they have the equipment to move it – you and China are the only
two countries in the world that could take it out.”
Trump said Iran agreed to this a couple of days ago but
then “changed their mind” on allowing the U.S. to go in and get the
buried enriched uranium.
The president was asked whether the fractured Iranian leadership could actually reach a deal with the U.S., and Trump said yes.
“You have the moderates and you have the lunatics. I think
the moderates are more respected. The lunatics want to fight to the end —
it would be a very quick fight,” he replied.
The president was also asked whether the ceasefire could remain in place.
“It’s unbelievably weak, I would say. ... Right now, it’s
on life support. ... I would say the ceasefire is on massive life
support,” Trump assessed.
The high stakes Trump-Xi meeting in China
Trump had said
on Truth Social in late March that “My meeting with the Highly
Respected President of China, President Xi Jinping, which was originally
postponed due to our Military operation in Iran, has been rescheduled,
and will take place in Beijing” in mid-May.
Last week, the president was asked about the relationship between China and Iran.
"I have a very good relationship with President Xi. You
know, I find him to be a tremendous guy, and we get along well. And you
see how we do. We do a lot of business with China and making a lot of
money. We're making a lot of money. It's different than it used to be,
but I'll be talking about – that'll be one subject,” Trump said.
Trump added: “But he [Xi] has been very nice about this.
You know, in all fairness, he gets like, 60% of his oil from Hormuz. And
he's been, I think he's been very respectful. We haven't been
challenged by China. They don't challenge us. And he wouldn't do that. I
don't think he'd do that because of me. But, I think he's been very
respectful."
Rubio in October had said
the U.S. “condemns the Chinese Communist Party (CCP)’s recent detention
of dozens of leaders of the unregistered house Zion Church in China,
including prominent pastor Mingri 'Ezra' Jin.”
“This crackdown further demonstrates how the CCP exercises
hostility towards Christians who reject Party interference in their
faith and choose to worship at unregistered house churches. We call on
the CCP to immediately release the detained church leaders and to allow
all people of faith, including members of house churches, to engage in
religious activities without fear of retribution."
Last week, Trump reportedly indicated that “I’ll bring it up” when asked about the imprisonment of the Christian pastor.
Jimmy Lai, a prominent Catholic, is also being prosecuted
by the Chinese government. Lai, a former Hong Kong media mogul and
outspoken pro-democracy voice, was convicted
on alleged fraud charges in October 2022, and he was already serving
jail time for his role in Hong Kong’s protests in 2019 and for attending
a 2020 vigil for those killed by the Chinese government during the
Tiananmen Square protest clampdown in 1989.
Lai also faced charges
related to “colluding with foreign forces” and putting together
“seditious publications” — and he now faces potential life in prison.
Ten bishops from around the world signed
a petition in November 2023 calling upon the CCP-led Hong Kong
government “to immediately and unconditionally release Jimmy Lai. Mr.
Lai’s persecution for supporting pro-democracy causes through his
newspaper and in other forums has gone on long enough.”
The signatories included Archbishop Timothy Dolan and Bishop Robert Barron of the United States, both of whom were named by Trump to the recently-created Religious Liberty Commission last year.
Trump told
conservative radio host Hugh Hewitt earlier in May, “I brought him up”
with Xi previously, and “I will be bringing it up” again during his
meeting with Xi this week.
“I’ll bring them both up. I brought it up before – Jimmy Lai, I brought up,” Trump said at the White House on Monday.
“Jimmy Lai, he caused lots of turmoil with China, he tried
to do the right thing, he wasn’t successful, he went to jail, and people
would like him to get out, and I’d like to see him get out too. So,
I’ll bring him up again.”
The president said of Taiwan that “it always comes up.”
Trump said that the Russian invasion of Ukraine would not
have happened if he were president, and added that “Taiwan, I equate it a
little bit to that. If you have the right president, I don’t think
it’ll happen. I think we’ll be fine. I have a very good relationship
with President Xi, because I don’t want that to happen.”
Jiakun said
Monday that “China stands ready to work with the U.S. to expand
cooperation and manage differences in the spirit of equality, respect
and mutual benefit, and provide more stability and certainty for a
transforming and volatile world.”
Jerry Dunleavy
Source: https://justthenews.com/government/white-house/us-sanctions-chinese-firms-assisting-irgc-iran-war-looms-large-ahead-trumps
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