‘Many of these companies even appear to engage in activities that violate existing U.S. sanctions against Iran.’
The chairman and GOP members of a House committee have asked the Biden administration to investigate six state-owned Chinese companies for their alleged ties to sanctioned Iranian industries.
The lawmakers cited reports that U.S. investment firms have invested billions of dollars in these Chinese companies.
“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,” the letter reads.
The companies under scrutiny are leading firms in China’s weapons, aviation, ocean shipping, and petroleum industries. These include China North Industries Group (Norinco), Aviation Industry Corporation of China (AVIC), China Ocean Shipping (COSCO), China National Offshore Oil Corporation (CNOOC), CRRC Corporation Limited (CRRC), and China Petroleum & Chemical Corporation (Sinopec). Of these companies, four are on the U.S. trade blacklist.
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The lawmakers have listed details of these companies’ involvement in Iran’s defense and energy industries. Two Chinese firms, Norinco and AVIC, have allegedly provided weapons to Iran, while China Ocean Shipping (COSCO) allegedly transports oil from Iran to China.
In addition, the lawmakers alleged that CNOOC subsidiaries have been involved in projects with the U.S.-sanctioned National Iranian Oil, while Sinopec helped Tehran develop the first phase of an oil field in Iran and may still be involved in the later phase of the project.
“The United States must counter the new authoritarian axis spearheaded by [China] and Iran and penalize those [Chinese] companies that help fund Iran’s activities to support Houthi attacks on commercial shipping in the Red Sea and stoke attacks against Israel by Hamas, Hezbollah, and Palestinian Islamic Jihad—all Specially Designated Nationals by Treasury,” the lawmakers said.
Close Ties to Iran
A January report from the Prague Security Studies Institute found that 40 Chinese publicly traded companies are allegedly strategically tied to Iran’s military or energy industry, with at least $6.2 billion from U.S. investment firms.
These companies were involved in multiple Iranian sectors, including military, communications and surveillance, oil and gas, and infrastructure.
“These findings raise a number of pressing questions regarding the due diligence and material risk disclosures performed by the respective U.S. asset managers and index providers, not to mention the woeful level of fiduciary responsibility,” the report noted.
“While Iran is ultimately responsible for much of the region’s ongoing bloodshed, its destructive and subversive capacity is magnified by Chinese support,” the report concluded.
Legislation Efforts to Restrict US Investment in CCP-Backed Firms
U.S. lawmakers have introduced congressional measures to prevent and track U.S. investments in Chinese companies that help the Chinese regime strengthen its military.
In July 2023, Mr. Casey and Sen. John Cornyn (R-Texas) introduced the “Outbound Investment Transparency Act.” The legislation requires American firms to notify the Treasury Department if they have investments in Chinese firms with sensitive technologies, including semiconductors, artificial intelligence, quantum computing, and hypersonics, over national security concerns.
Original News Source Link – Epoch Times
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