The US is “imposing sanctions on China- and Iran-based entities and individuals that support Iran’s ballistic missile program,” the US Department of State reported yesterday.
This is the latest group of sanctions that seek to go after the Iran-China nexus and how organizations, companies, or individuals are involved in working for Iran’s interests in China. The decision comes amid Iran-US talks.
Iran has been nonplussed by these sanctions. On April 29, the US also said it was “sanctioning six entities and six individuals based in Iran and China for their role in a network procuring ballistic missile propellant ingredients on behalf of Iran’s Islamic Revolutionary Guard Corps (IRGC).”
On April 1, the US said it was “today sanctioning six entities and two individuals based in Iran, the UAE, and China that have been involved in the procurement of key components on behalf of entities connected to Iran’s UAV and ballistic missile programs.”
In addition, on March 20, the US said it was “sanctioning Huaying Huizhou Daya Bay Petrochemical Terminal Storage, an oil terminal in China, for buying and storing Iranian crude oil from a sanctioned vessel.”
The US has thereby systematically cracked down on Iran-China trade in recent months.
The most recent decision focuses on “entities and individuals primarily based in China and Hong Kong for their support to Iran’s ballistic missile program.”
“Iran remains heavily reliant on China to conduct its malign activities in the Middle East,” the State Department said. “This is another example of how the CCP and China-based companies provide key economic and technical support to Iran and its proxies, driving regional instability and threatening US partners and allies.”
The report added that “these entities and individuals are supporting Iran’s efforts to indigenize the manufacturing of carbon fiber for use in Iran’s ballistic missile program. These entities and individuals support the supply of carbon fiber, its precursors, and carbon fiber manufacturing equipment to the various Islamic Revolutionary Guard Corps (IRGC) sub-organizations that oversee this effort, including US-designated IRGC Aerospace Force Research and Self Sufficiency Jihad Organization (IRGC ASF RSSJO) and IRGC Research and Self Sufficiency Jehad Organization (IRGC RSSJO).”
What is the "Maximum pressure" campaign on Iran?
This is part of the US “maximum pressure” campaign on Iran. The US is laser-focused on the threat of the ballistic-missile program and other aspects of Iran’s trade with China that benefit things such as the drone program in Iran.
“The United States will use all available means, including sanctions on entities based in third countries, to expose and disrupt Iran’s schemes to procure equipment and items supporting its ballistic missile program, which destabilizes the Middle East and beyond,” the State Department statement said.
These are important moves. Iran is already concerned that a deal is not possible with the US.
It doesn’t appear the US would want to go back on these sanctions after having rolled them out. Iran will have to decide how to proceed in its talks with the US.