US sanctions nine Chinese and Hong Kong entities over alleged Iran military links
The US Treasury announced sanctions on nine companies based in mainland China and Hong Kong, accusing them of supplying Iran's military with components for drones and weapons. The move came days before a planned Trump-Xi summit. Beijing called the decision 'unilateral coercion' and said it will respond with countermeasures.
The US Treasury's Office of Foreign Assets Control (OFAC) announced that nine companies based in mainland China and Hong Kong were added to its sanctions list for supplying components for drones and missile programs operated by Iran's Revolutionary Guard. Three individuals were also designated.
The move came just days before President Trump's planned summit with Chinese leader Xi Jinping in Beijing. A White House spokesperson said the timing was driven by 'documented violations' rather than negotiating leverage. China's foreign ministry spokesperson Lin Jian called the action 'unilateral coercion and a violation of international law.'
Markets had a mixed reaction. Hong Kong's Hang Seng index dipped 0.7% intraday and the yuan slipped to 7.32 against the dollar. The targeted firms include three exporters of electronic components and a Hong Kong company developing drone-control software.
More from Asia
Air India to furlough staff and slash flights as Iran war squeezes finances
Air India, partly owned by Singapore Airlines, is preparing to furlough thousands of staff and cut flights by about 12% as the Iran war drives up fuel costs and forces longer routings, sources told Reuters. Second-quarter losses could exceed 350 million dollars. The move risks deepening booking losses across India's aviation sector.
Explosion at China fireworks factory kills 26 people
An explosion at a fireworks factory in Hunan province, China, killed 26 people and injured 61, according to state media reports.
China scraps tariffs for all but one African nation
China announced it has scrapped tariffs for almost all African nations. This move boosts China's soft power in African states, but may also deepen economic inequalities.