US sanctions target Chinese, Hong Kong firms over Iran ties

The Trump administration imposed new sanctions on dozens of Chinese and Hong Kong-based firms and individuals tied to Iran, targeting procurement networks but avoiding major Chinese banks. Treasury Secretary Scott Bessent called the action Operation Economic Outcast, aimed at cutting Iran's financial lifelines. The measures focus on Hong Kong-based Sweet Ocean Industrial Ltd, accused of acquiring laser-optics equipment for Iran's defense-linked Malek Ashtar University of Technology. Also designated were individuals Li Na, Tian Jianbai and Zhang Limei, plus several logistics and front companies allegedly facilitating payments for Iranian networks. Experts question the effectiveness, noting entity-specific sanctions can be bypassed by creating substitute shell companies. China's Foreign Ministry and Hong Kong government did not respond to requests for comment.