Iran reportedly obtained a Chinese-manufactured spy satellite in late 2024, enabling it to surveil US military bases in the Middle East during recent conflicts, as per a report by the Financial Times. However, China has strongly refuted these allegations, labeling them as baseless and warning of retaliatory measures if the US were to impose a 50% tariff on China over alleged weapons supply to Iran.
The Chinese response follows claims by the Financial Times that the spy satellite, known as TEE-01B, was developed and launched by a Chinese company, Earth Eye Co., and later acquired by Iran’s Aerospace Force of the Islamic Revolutionary Guard Corps (IRGC) based on leaked Iranian military records.
Allegedly, Iranian commanders utilized the satellite to monitor vital US military sites by obtaining time-stamped coordinates, satellite images, and orbital information. The satellite reportedly captured images before and after drone and missile attacks on these locations in March.
Moreover, the IRGC was granted access to commercial ground stations operated by Emposat, which has a network spanning across Asia, Latin America, and other regions, as part of the agreement.
The satellite purportedly captured images of Prince Sultan Air Base in Saudi Arabia and other strategic locations during the time of reported attacks. The Financial Times report also suggested that the satellite monitored sites like the Muwaffaq Salti Air Base in Jordan, areas near the US Fifth Fleet’s naval base in Bahrain, and Erbil airport in Iraq, coinciding with alleged IRGC assaults in those areas.
In response, the Chinese Embassy in Washington dismissed the accusations, denouncing them as groundless and aimed at smearing China. The Chinese Foreign Ministry further rejected assertions of providing military aid to Iran.
Chinese Foreign Ministry spokesperson Lin Jian emphasized that the media reports alleging Chinese military support to Iran are entirely fabricated. The statement warned of retaliatory measures if the US proceeds with tariff escalations based on these claims.
The situation escalated after US President Donald Trump hinted at imposing significant tariffs on countries, including China, suspected of supporting Iran amid the ongoing Middle East conflict. Reports suggested US intelligence had indications of potential weapon transfers from China to Iran during a fragile US-Iran ceasefire.
Trump proposed a 50% tariff on any country found assisting Iran with military supplies, particularly targeting China based on intelligence reports suggesting forthcoming air defense system deliveries to Iran from Beijing.
During an interview with Fox News, Trump also hinted at the possibility of providing crude oil to China, domestically and via Venezuela. Despite enduring US sanctions, Chinese companies have reportedly continued supplying dual-use technology to Iran, aiding in weapons development.
While China aims to maintain a neutral stance, it remains a significant economic partner of Iran, notably as a major oil importer. Iran, on the other hand, has been supplying Russia with drones for use in Ukraine and continues to be a crucial oil supplier to China despite sanctions.