The U.S. Department of the Treasury building in Washington D.C. [Photo courtesy of AFP Yonhap News]

The United States has imposed sanctions on Chinese and Hong Kong companies, among others, just ahead of a summit between the U.S. and China.

According to foreign media reports from Reuters and The New York Times (NYT), the U.S. Department of the Treasury announced on the 8th (local time) that it had designated 10 companies and individuals from China and Hong Kong, involved in supporting Iran's weapons and drone production, for sanctions.

These sanctions are aimed at Iran's military industry supply chain. The measures are intended to make it difficult for Iran to procure the necessary materials for drone and missile production.

This move comes ahead of U.S. President Donald Trump's visit to China. China's support for Iran has been cited as one of the major points of contention with the Trump administration.

Among those sanctioned are Yushita Shanghai International Trade, identified as having supported Iran's purchase of Chinese weapons, and Hitex Insulation, suspected of supplying materials for ballistic missiles. Both companies are based in China.

In a statement, the Treasury Department said, "We stand ready to continue taking economic measures targeting Iran's military industry infrastructure to prevent Iran from rebuilding its production capabilities."

The department also stated that it is prepared to take further action against foreign companies supporting Iran's illicit trade, including airlines.

The Treasury Department further intensified pressure on Iran's crude oil trade network by warning of possible secondary sanctions on foreign financial institutions linked to Iran's independent small refineries, so-called "teapot" refiners.

Treasury Secretary Scott Bessant said, "Under President Trump's firm leadership, the United States will continue to take action against foreign individuals and companies providing weapons to the Iranian military."