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Gordon Chang: “China’s Banks Involved with Iran Should Be Sanctioned”
  • NNP=Hong Seong-Gu
  • May 11, 2026 at 3:21 PM
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Gordon Chang, a renowned author and China expert, stated on Sunday that the United States should impose sanctions on Chinese banks that are financing "rogue states" like Iran and drug cartels. Chang made these remarks in an interview with Newsmax.


Appearing on "Sunday Agenda," Chang pointed out that Beijing has been supporting hostile regimes and criminal organizations for years without facing meaningful sanctions from Washington.


"China has been funding all these bad actors," he said. "They have been funding drug cartels."


Chang's comments come as tensions in the Middle East continue to escalate, with a meeting expected between U.S. President Donald Trump and Chinese President Xi Jinping.


The U.S. State Department recently imposed sanctions on three Chinese companies accused of supporting the Iranian regime amid ongoing disputes over Iran's nuclear ambitions and threats to maritime transport in the Strait of Hormuz.


According to Chang, the Trump administration should take much stronger measures by directly targeting Chinese financial institutions through Section 311 of the USA PATRIOT Act. This provision is a powerful anti-money laundering law that allows the Treasury Department to block foreign banks from the U.S. financial system.


"If President Trump instructs his Treasury Secretary to invoke Section 311 of the USA PATRIOT Act and cut off Chinese banks from their dollar accounts, it would deal a much greater blow to the Chinese economy," Chang said.


Chang alleged that Chinese banks are deeply involved in global money laundering operations linked to drug trafficking organizations operating not only in Iran but also across Latin America, stating, "This is the Chinese banking system that is deeply involved in global money laundering."


The broadcast also focused on China's reliance on Middle Eastern oil.


Host Joe Pinion noted that despite Beijing possessing a massive strategic petroleum reserve, China is vulnerable to long-term instability in the Strait of Hormuz, through which approximately 20% of the world's oil supply passes.


Chang acknowledged that China has the world's largest oil reserves, estimated to cover up to 150 days of imports, but warned that even Beijing cannot withstand an indefinite supply disruption.


"Eventually, it will run out," he said. "And we know that a shock to oil prices has dealt a significant blow to the Chinese economy."


Amir Fakhravar, chairman of the National Iranian Congress, who joined the interview, accused China and Russia of continuing to militarily support Iran through the provision of weapons and supplies.


He warned that China and Russia should not be trusted as guarantors in future negotiations with Tehran.


Dr. Sheila Nazarian, a plastic surgeon and pro-Israel advocate, also argued that the Iranian regime cannot be negotiated with, urging a complete regime change as she claimed the Tehran leadership survives through the support of China and Russia.


By NNP Chief Editor Sung Ku Hong / Special Correspondent for this paper NNP info@newsandpost.com

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