WASHINGTON, D.C. — Chairman John Moolenaar (R-MI) and all 11 Republican members of the House Select Committee on the Chinese Communist Party have sent a letter to U.S. Treasury Secretary Janet Yellen. The letter calls for the Office of Foreign Assets Control and Financial Crimes Enforcement Network to investigate six People's Republic of China (PRC) companies allegedly supporting Iran’s military and energy sector. These companies are accused of helping Iran circumvent existing U.S. sanctions, thereby jeopardizing U.S. strategic interests.
The Select Committee's April report indicated that $6.5 billion in U.S. investment capitalized PRC companies deemed national security risks as of 2023. A similar January report by the Prague Security Studies Institute identified many of these companies as being strategically tied to Iran’s military or energy industry, amounting to at least $6 billion.
Joining Chairman Moolenaar in this call were Reps. Rob Wittman (R-VA), Blaine Luetkemeyer (R-MO), Andy Barr (R-KY), Dan Newhouse (R-WA), Darin LaHood (R-IL), Neal Dunn (R-FL), Jim Banks (R-IN), Dusty Johnson (R-SD), Michelle Steel (R-CA), Ashley Hinson (R-IA), and Carlos Gimenez (R-FL).
"Many of these companies even appear to engage in activities that violate existing U.S. sanctions against Iran," the lawmakers wrote. "As a result, U.S. retirees are likely indirectly funding activities that run counter to U.S. national security and international stability."
They further stated, “The United States must counter the new authoritarian axis spearheaded by the PRC and Iran and penalize those PRC companies that help fund Iran’s activities.”
The lawmakers requested an investigation into six specific PRC companies:
1. China North Industries Group Co., Ltd. (Norinco)
2. Aviation Industry Corporation of China (AVIC)
3. China Ocean Shipping Co., Ltd. (COSCO)
4. China National Offshore Oil Corporation (CNOOC)
5. CRRC Corporation Limited (CRRC)
6. China Petroleum & Chemical Corporation (Sinopec)
The full text of their letter includes detailed allegations against each company, such as Norinco's alleged involvement in smuggling rifles to Iranian-backed Houthis and AVIC's sale of aircraft to the IRGC Aerospace Force.
Additionally, under IFCA regulations, Treasury is required to impose sanctions on entities involved with Iran's energy sector if they provide significant goods or services related thereto.
Numerous subsidiaries of COSCO have been linked to shipping Iranian oil despite previous sanctions imposed on one subsidiary in 2019 for similar activities.
CNOOC was listed in 2017 among non-Iranian firms qualified for projects with National Iranian Oil Co., while CRRC partnered with sanctioned Iranian entities for infrastructure projects.
Sinopec has been implicated in developing oil fields in Iran, continuing its involvement beyond initial phases completed in 2015.
"The Chief-Commander of the IRGC recently called for 'the total eradication of Israel,'” noted the lawmakers, emphasizing the urgency for Treasury action against these PRC firms aiding Iran’s destabilizing efforts.
They requested a thorough investigation into whether these firms' actions constitute material support warranting secondary sanctions under relevant executive orders by June 14, 2024.
