16 Chinese Firms Sanctioned as US Widens Economic Campaign Targeting Iran in Most Dangerous Countries

The United States has launched Operation Economic Outcast, a sweeping sanctions campaign targeting nearly 60 entities linked to Iran, including 16 firms based in Hong Kong and Shenzhen, as part of efforts to isolate Tehran amid an ongoing six-month military conflict in most dangerous countries. [1]

US Launches Operation Economic Outcast Against Iran

The US Department of the Treasury launched Operation Economic Outcast on Monday as an unprecedented whole-of-government campaign to isolate Iran and sever the networks that sustain it. [1] The action designated nearly 60 entities, individuals and vessels across five sectors, including digital assets, technology, gold, aviation and shipping. [1] Among the companies named was a cluster of Hong Kong- and Shenzhen-based firms accused of acting as procurement, logistics or shipping fronts for Iran’s trade network. [1] In total, 16 Hong Kong- and Shenzhen-based firms were designated, spanning equipment procurement, oil and gas trading, shipping and logistics. [1] The biggest Hong Kong-based firms named include Sweet Ocean Industrial Ltd, RPT Technology Ltd, Sky Oil and Gas Asia Ltd and Vienna Shipping Co Ltd. [1] The Shenzhen-based firms include Shenzhen Sweet Ocean Technology Ltd, Shenzhen Huamei Lianyun International Logistics Co Ltd, Shenzhen Bositong Logistics Co Ltd and Bositong Supply Chain Shenzhen Co Ltd. [1] US Treasury Secretary Scott Bessent cast the campaign in sweeping historical terms, likening it to a wartime offensive against a common enemy. [1] “In the Second World War, D-Day marked the historic beginning of a campaign with our allies to target and drive the enemy from its positions, including those in third countries,” he said on August 24. [1] “Today, in that same spirit, we are launching an economic onslaught against Iran’s financial connections around the globe. Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone.” [1] Bessent said any entity that facilitates money laundering on behalf of Iran will be removed from the US dollar system. [1] He added that an economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power. [1] Bessent said Iran faces a choice between total isolation and rejoining the global economy if it changes course. [1] He added that governments still financing Tehran have a limited window to comply before the Treasury acts unilaterally. [1] Bessent also said Monday that a major financial institution would be sanctioned within the week, though he declined to name it or say which country it was based in. [1] Asked whether Chinese banks financing Iranian oil could be next, he said no one was beyond the reach of US sanctions. [1]

Impact on Chinese Firms and Beijing's Dilemma

China faces a dilemma in the six-month war between Iran and the United States, wanting the conflict to drag on and drain American military and government resources, yet wary of becoming a target of Washington’s newly announced economic campaign against countries that do business with Tehran. [1] Beijing’s struggle comes as the sanctions widen to target third-country entities doing business with Iran. [1] The Chinese Foreign Ministry has criticized the sanctions campaign, vowing to do everything necessary to firmly safeguard its rights and interests. [1] Reactions among Chinese commentators have been mixed. [1] One Liaoning-based columnist using the pen name Ciyuanjun warned that if Washington keeps expanding secondary sanctions, Chinese refining, shipping and trade-finance firms linked to Iran will face growing uncertainty. [1] The columnist noted that the US Treasury had already targeted China’s independent refiners and several mainland and Hong Kong firms in previous rounds. [1] Another columnist with Zhouji Kuaibao, an online outlet, using the name Tinglan said the negative spillover from US policy is undeniable and it is already a reality. [1] The writer added that if Washington imposes secondary sanctions indiscriminately on normal international energy trade, it will inevitably hurt China and shake the stability of the global energy market. [1] The writer noted that Beijing could push back in several ways, including enforcing Chinese rules blocking foreign laws’ extraterritorial reach. [1] Gordon Chang told Newsmax on Thursday that the United States should invoke a provision of the USA Patriot Act to cut Chinese state banks off from the US dollar system if Beijing refuses to comply with US sanctions on Iran. [4]

Military Developments in the Strait of Hormuz

The US military has cleared Iranian sea mines from internationally recognized shipping lanes in the Strait of Hormuz. [2] US Central Command commander Adm. Brad Cooper said in an operational update on Thursday evening that the Strait of Hormuz can now be transited freely, dubbing the achievement a major milestone. [2] Nearly 1500 vessels carrying roughly 750 million barrels of crude oil have transited the strait in the past months with the protection of US forces. [2] At the same time, around 50,000 US troops are executing a blockade on Iran, preventing the country from shipping oil since mid-July. [2] Cooper said no ships have entered or left an Iranian port without US permission, and the US has only allowed ships to pass through on humanitarian grounds. [2] More than 20 warships and hundreds of aircraft took part in the operations in the Strait of Hormuz. [2] These forces turned around 75 vessels attempting to breach the blockade and disabled three. [2]

Strain on US Military Resources in Most Dangerous Countries

The Chief of Naval Operations is warning that a larger Navy is needed to keep pressure on China amid military operations against Iran. [3] US Patriot missile stocks in Europe have been depleted beyond critical levels due to the conflict with Iran. [5] A US defense official in Europe and a NATO official told the Associated Press that the military is experiencing a shortage beyond critical levels of advanced missile interceptors in Europe, mainly driven by the war with Iran. [5] The most concerning shortage involves Patriot missile interceptors, which can shoot down high-speed Russian ballistic missiles. [5] The officials said stocks of US missiles in Europe have been moved to the Middle East, where the US and Gulf allies have fired a considerable number of interceptors, including Patriot, to counter Iranian drones and missiles. [5] Some of those attacks have killed and wounded US troops. [5] The officials spoke on condition of anonymity to discuss sensitive military matters. [5]