US Sanctions Iranian Arms Network Operating Via China, Hong Kong

The US Treasury Department has imposed new sanctions on nine individuals and entities accused of operating networks that supported arms purchases for Iran's Islamic Revolutionary Guard Corps (IRGC) and Ministry of Defense. The measures are part of the administration's "economic rage" campaign aimed at increasing pressure on Tehran.

The Treasury stated that the sanctions targeted individuals and companies based in China and Hong Kong, accusing them of facilitating the purchase of military equipment and executing financial transactions related to Iran's arms programs. The networks also allegedly operated covert banking channels to finance these operations.

In a statement, Treasury Secretary Scott Bessent asserted that the United States is working to "disrupt foreign supply chains that support the Iranian military's efforts to acquire weapons." He emphasized that Washington will continue to target any entities providing financial or logistical support to the Iranian military establishment.

According to the Treasury, the new list includes executives and commercial companies in Hong Kong and Shanghai, alongside Iranian and Chinese intermediaries implicated in purchasing military equipment for the IRGC and the Iranian Ministry of Defense. A company operating within a clandestine banking network used to facilitate payments for arms deals was also sanctioned.

The department clarified that these actions complement sanctions imposed in May, which targeted procurement networks associated with the IRGC and entities seeking to acquire military technologies and equipment from abroad. Concurrently, the US State Department announced separate sanctions on two individuals and two entities in Iran and Belarus for activities linked to Iran's conventional arms program.

The Treasury confirmed that the sanctions will freeze any assets or financial interests of the designated individuals and entities located within the United States or under the control of US persons. It also prohibits US citizens and companies from engaging in transactions with them, while warning of potential secondary sanctions on foreign financial institutions that facilitate dealings with the targeted entities. This move is part of a broader US policy to intensify economic pressure on Iran by targeting its external financing networks, sanctions evasion methods, and procurement channels for weapons and military components, as Washington seeks to curtail Tehran's military capabilities and the activities of its regional proxies.