US sanctions China, Hong Kong entities over Iran's drone program

The U.S. Treasury on Friday announced sanctions against 10 individuals and companies, including several based in China and Hong Kong, for supporting Iran's military in acquiring weapons and raw materials used to manufacture Tehran's Shahed drones. The action comes as efforts to end the war with Iran have stalled and just days before President Donald Trump is scheduled to travel to China for a meeting with President Xi Jinping. Treasury Secretary Scott Bessent stated in a release that the department remains prepared to take economic action against Iran's military industrial base to prevent Tehran from rebuilding its production capacity and extending its reach beyond its borders. The Treasury also indicated it could impose secondary sanctions on foreign financial institutions that assist Iran's efforts, including those linked to China's independent "teapot" oil refineries, and against foreign companies involved in illicit Iranian commerce such as airlines. "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," Bessent said. The sanctions target the supply networks that enable Iran's drone program, which has been a significant concern for Western military officials in recent years amid ongoing regional conflicts involving Tehran-backed forces.