US "quite likely" to target Chinese firms aiding Iran's money flows: Ex-Trump NSA on Beijing's support to Tehran amid conflict

Washington DC: The United States is "quite likely" to impose secondary sanctions on Chinese financial institutions facilitating financial flows to Iran if Beijing does not alter its conduct, former US National Security Advisor Lt Gen. HR McMaster said, amid growing concerns in Washington over China's alleged support for Tehran during the West Asia conflict.

Speaking to on the reports that Chinese satellite imagery may have been used by Iran in connection with attacks on US forces in the region, McMaster said US President Donald Trump was likely to raise the issue directly with Chinese President Xi Jinping during the scheduled meeting on September 24 and could respond by imposing economic costs on Beijing.

"I think President Trump is going to be pretty tough with Xi Jinping in private. This is kind of his style," McMaster said.


"He does that with Vladimir Putin," he added, referring to Trump's meeting with Putin last year in August in Alaska.

McMaster argued that Washington's response could extend beyond the alleged provision of intelligence and imagery to Iran, citing Chinese support for Russia as well as Tehran.

"I think the way to be tough would be to impose costs on China, not only for sharing this intelligence, which I believe is true, but also for providing the electronics and the hardware that Vladimir Putin needs to continue his onslaught against the Ukrainian people, to underwrite Iran with purchases of 97 per cent of Iran's oil," he said.

Looking ahead to Trump's planned September 24 meeting with Xi, McMaster said further US financial measures against Chinese entities were possible if Beijing did not change course.

"After the September 24 visit, if there isn't a change of behaviour on the part of the Chinese Communist Party leadership, I think you're quite likely to see secondary sanctions on Chinese financial institutions that are facilitating the financial flows to the Islamic Republic of Iran," the former Trump NSA said.

McMaster's remarks came in the context of a Wall Street Journal report on alleged Chinese satellite support to Iran.

The WSJ, citing US officials familiar with the matter, reported that Iran obtained high-resolution satellite imagery of Muwaffaq Salti Air Base in Jordan from Chinese entities before a July 17 Iranian missile attack that killed three US service members and wounded four others.

The officials described the intelligence as the clearest evidence to date, in their assessment, that Chinese commercial support to Iran had potentially contributed to lethal consequences for US forces.

The officials cited by the Journal did not identify the Chinese entities involved and did not allege that the Chinese government itself had directly ordered or participated in the transfer of imagery. The report said Iranian procurement of the imagery continued even after the attack.

The development comes ahead of a planned September 24 meeting between Trump and Xi, potentially adding another point of friction to already strained US-China relations.

McMaster's warning about possible secondary sanctions therefore comes against a broader backdrop of US scrutiny of China's economic, technological and intelligence links with Iran. Any such measures would represent a significant escalation in Washington's effort to pressure Chinese entities involved in supporting Tehran's financial and military capabilities.