China state firms targeted by U.S. lawmakers for allegedly helping Iran

NEW YORK -- Republican legislators on the House of Representatives' influential China-focused committee on Friday urged the U.S. to investigate six Chinese state-owned companies for allegedly helping Iran evade U.S. sanctions.

The Department of Treasury should provide an analysis on whether the activities of state-owned military, oil and shipping companies and their subsidiaries should be subject to secondary sanctions for assisting Iran's energy sector and military, the lawmakers said in a letter sent that day.

The six companies targeted by the House Select Committee on the Chinese Communist Party are China North Industries Group, Aviation Industry Corp. of China, China Ocean Shipping , China National Offshore Oil Corporation (CNOOC), CRRC, and China Petroleum & Chemical (Sinopec).

The group alleges that subsidiaries of CNOOC have participated in projects with the U.S.-sanctioned entity National Iranian Oil, while Sinopec helped develop an oilfield and may continue to be involved in other parts of the development.

The U.S. lawmakers say that American financial institutions have made billions of dollars of investments in these companies, and dozens others that bolster China's military capabilities and also support egregious human rights abuses in the country.

"Many of these companies even appear to engage in activities that violate existing U.S. sanctions against Iran. As a result, U.S. retirees are likely indirectly funding activities that run counter to U.S. national security and international stability," read the letter, signed by Chairman John Moolenaar and 11 Republican members.

The bipartisan House committee was formed in January 2023 to tackle security threats from China. It has produced a raft of proposals to combat Beijing's influence and capabilities.

Iran's main revenue comes from oil, but Western sanctions have barred it from shipping or receiving payments for oil. Over the years, Iran has developed means to export its oil, with the latest report from the International Energy Agency putting the country's oil exports at a five-year high of about 1.29 million barrels per day, with the vast majority going to China.