U.S. Imposes Sanctions on Hong Kong, China Firms over Iranian Drone Procurement

The United States imposed sanctions on six companies based in Hong Kong and China, accusing them of supporting an Iranian drone procurement network linked to Tehran's unmanned aerial vehicle (UAV) and ballistic missile programs.

The U.S. Treasury Department said these companies procured UAV components for Iran’s sanctioned firm Pishtazan Kavosh Gostar Boshra (PKGB) and its subsidiary Narin Sepehr Mobin Isatis (NSMI). The sanctions freeze U.S.-based assets of the targeted entities and prohibit American individuals or businesses from engaging with them.

According to the Treasury, Hong Kong-based Dingtai Industrial Technology Co Limited, Yonghongan Trade Limited, and Hong Kong Tianle International Co Limited have provided UAV-related components, including U.S.-origin valve assemblies, engines, and electronic parts. Three additional firms—DDC Develop Industry Hong Kong Limited, Shenzhen Zhiyu International Trade Co Ltd, and JP Oriental International Holdings Limited—are accused of shipping UAV production and testing equipment to Iran.

Treasury Secretary Scott Bessent said Iran continues to use front companies and third-country suppliers to acquire UAV components. The State Department added that these procurement schemes support Iran’s missile and drone programs, which are used against U.S. allies and exported to proxy groups and Russia.

China's embassy in Washington has rejected U.S.’ move. "China has always firmly opposed the illegal unilateral sanctions imposed by the United States and will firmly safeguard the legitimate rights and interests of its enterprises and citizens," Liu Pengyu, spokesperson for China's embassy in Washington, said.

The sanctions come days after the U.S. imposed additional penalties on Iran’s oil industry as part of former President Donald Trump's "maximum pressure" campaign aimed at cutting Tehran’s oil exports and preventing its nuclear ambitions. Iran has said it will not bow to U.S. pressure or sanctions.