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US intelligence finding shows China surging equipment sales to Russia to help war effort in Ukraine

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US intelligence finding shows China surging equipment sales to Russia to help war effort in Ukraine

WASHINGTON (AP) — China has surged sales to Russia of machine tools, microelectronics and other technology that Moscow in turn is using to produce missiles, tanks, aircraft and other weaponry for use in its war against Ukraine, according to a U.S. assessment.

Two senior Biden administration officials, who discussed the sensitive findings Friday on the condition of anonymity, said that in 2023 about 90% of Russia’s microelectronics came from China, which Russia has used to make missiles, tanks and aircraft. Nearly 70% of Russia’s approximately $900 million in machine tool imports in the last quarter of 2023 came from China.

US HOUSE FOREIGN AFFAIRS COMMITTEE HEAD SAYS PARTNERSHIP BETWEEN CHINA, RUSSIA IS GREATEST THREAT SINCE WWII

Chinese and Russian entities have also been working to jointly produce unmanned aerial vehicles inside Russia, and Chinese companies are likely providing Russia with nitrocellulose used in the manufacture of ammunition, the officials said. China-based companies Wuhan Global Sensor Technology Co., Wuhan Tongsheng Technology Co. Ltd. and Hikvision are providing optical components for use in Russian tanks and armored vehicles.

In this photo released by Xinhua News Agency, Russian Foreign Minister Sergey Lavrov, left, and Chinese President Xi Jinping meet at the Great Hall of the People in Beijing on April 9, 2024. China has surged sales to Russia of machine tools, microelectronics and other technology that Moscow in turn is using to produce missiles, tanks, aircraft and other weaponry. That’s according to two senior Biden administration officials who discussed the sensitive findings on the condition of anonymity. Russia’s microelectronics came from China, where Russia has used missiles, tanks and aircraft.  (Li Xueren/Xinhua via AP)

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The officials said Russia has received military optics for use in tanks and armored vehicles manufactured by Chinese firms iRay Technology and North China Research Institute of Electro-Optics, and China has been providing Russia with UAV engines and turbojet engines for cruise missiles.

Russia’s semiconductor imports from China jumped from $200 million in 2021 to over $500 million in 2022, according to Russian customs data analyzed by the Free Russia Foundation, a group that advocates for civil society development.

Beijing is also working with Russia to improve its satellite and other space-based capabilities for use in Ukraine, a development the officials say could in the longer term increase the threat Russia poses across Europe. The officials, citing downgraded intelligence findings, said the U.S. has also determined that China is providing imagery to Russia for its war on Ukraine.

The officials discussed the findings as Secretary of State Antony Blinken is expected to travel to China this month for talks. Blinken is scheduled to travel next week to the Group of 7 foreign ministers meeting in Capri, Italy, where he’s expected to raise concerns about China’s growing indirect support for Russia as Moscow revamps its military and looks to consolidate recent gains in Ukraine.

President Joe Biden has previously raised his concerns directly with Chinese President Xi Jinping about Beijing indirectly supporting Russia’s war effort.

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While China has not provided direct lethal military support for Russia, it has backed it diplomatically in blaming the West for provoking Russian President Vladimir Putin’s decision to launch the war and refrained from calling it an invasion in deference to the Kremlin.

China has repeatedly said it isn’t providing Russia with arms or military assistance, although it has maintained robust economic connections with Moscow, alongside India and other countries, amid sanctions from Washington and its allies.

“The normal trade between China and Russia should not be interfered or restricted,” said Liu Pengyu, spokesman of the Chinese Embassy in Washington. “We urge the U.S. side to refrain from disparaging and scapegoating the normal relationship between China and Russia.”

Xi met in Beijing on Tuesday with Russian Foreign Minister Sergey Lavrov, who heaped praise on Xi’s leadership.

Russia’s growing economic and diplomatic isolation has made it increasingly reliant on China, its former rival for leadership of the Communist bloc during the Cold War.

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Treasury Secretary Janet Yellen, who returned to Washington this week from a visit to Beijing, said she warned Chinese officials that the Biden administration was prepared to sanction Chinese banks, companies and Beijing’s leadership, if they assist Russia’s armed forces with its ongoing invasion of Ukraine.

The Democratic president issued an executive order in December giving Yellen the authority to sanction financial institutions that aided Russia’s military-industrial complex.

“We continue to be concerned about the role that any firms, including those in the PRC, are playing in Russia’s military procurement,” Yellen told reporters, using the initials for the People’s Republic of China. “I stressed that companies, including those in the PRC, must not provide material support for Russia’s war and that they will face significant consequences if they do. And I reinforced that any banks that facilitate significant transactions that channel military or dual-use goods to Russia’s defense industrial base expose themselves to the risk of U.S. sanctions.”

The U.S. has frequently downgraded and unveiled intelligence findings about Russia’s plans and operations over the course of the more than 2-year-old war with Ukraine.

Such efforts have been focused on highlighting plans for Russian misinformation operations or to throw attention on Moscow’s difficulties in prosecuting its war against Ukraine as well as its coordination with Iran and North Korea to supply it with badly needed weaponry. Blinken last year spotlighted intelligence that showed China was considering providing arms and ammunition to Russia.

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The White House believes that the public airing of the intelligence findings has led China, at least for now, to hold off on directly arming Russia. China’s economy has also been slow to emerge from the COVID-19 pandemic. Chinese officials could be sensitive to reaction from European capitals, which have maintained closer ties to Beijing even as the U.S.-China relationship has become more complicated.

Meanwhile, China on Thursday announced rare sanctions against two U.S. defense companies over what it called their support for arms sales to Taiwan, the self-governing island democracy Beijing claims as its own territory to be recovered by force if necessary.

The announcement freezes the assets of General Atomics Aeronautical Systems and General Dynamics Land Systems held within China. It also bars the companies’ management from entering the country.

Filings show General Dynamics operates a half-dozen Gulfstream and jet aviation services operations in China, which remains heavily reliant on foreign aerospace technology even as it attempts to build its own presence in the field.

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The company also helps make the Abrams tank being purchased by Taiwan to replace outdated armor intended to deter or resist an invasion from China.

General Atomics produces the Predator and Reaper drones used by the U.S. military.

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Oil prices rise anew after a US-Iran standoff in the Strait of Hormuz strands tankers

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Oil prices rise anew after a US-Iran standoff in the Strait of Hormuz strands tankers

NEW YORK (AP) — Oil prices rose in early trading Sunday as a standoff between Iran and the U.S. prevented tankers from using the Strait of Hormuz, the Persian Gulf waterway that is crucial to global energy supplies.

The price of U.S. crude oil increased 6.4% to $87.90 per barrel an hour after trading resumed on the Chicago Mercantile Exchange. The price of Brent crude, the international standard, climbed 5.8% to $95.64 per barrel.

The market reaction followed more than two days of lifted hopes and dashed expectations involving the strait. Crude prices plunged more than 9% Friday after Iran said it would fully reopen the strait, which it effectively controls, to commercial traffic.

Tehran reversed that decision and fired on several vessels Saturday after President Donald Trump said a U.S. Navy blockade of Iranian ports would remain in effect. On Sunday, Trump said the U.S. attacked and forcibly seized an Iranian-flagged cargo ship that allegedly tried to get around the blockade. Iran’s joint military command vowed to respond.

Sunday’s higher prices wiped out much of the declines seen Friday, signaling renewed doubts about how soon ships will again transport the vast amounts oil the world gets from the Middle East.

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The US-Israeli war against Iran, now in its eighth week, has created one of the worst global energy crises in decades. Countries in Asia and Europe that import much of their oil from the Gulf have felt the most impact of halted supplies and production cuts, although rapidly rising gasoline, diesel and jet fuel prices are affecting businesses and consumers worldwide.

Asked when he thought U.S. motorists would again see gas cost less than $3 a gallon on average, Energy Secretary Chris Wright said prices at the pump might not go down that much until next year.

“But prices have likely peaked, and they’ll start going down,” Wright told CNN’s “State of the Union” on Sunday.

The price of crude oil — the main ingredient in gasoline — has fluctated dramatically since the U.S. and Israel attacked Iran on Feb. 28, and as Iran retaliated with airstrikes on other Gulf states. Crude traded at roughly $70 a barrel before the conflict, spiked to more than $119 at times, and previously closed Friday at $82.59 for U.S. oil and $90.38 for Brent.

Industry analysts have repeatedly warned that the longer the strait is closed, the worse prices could get.

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A fragile, two-week ceasefire between the U.S. and Iran is set to expire Wednesday, while escalating tensions in the Strait of Hormuz puts the fate of new talks to end the war into question.

Even if a lasting deal to reopen the Strait of Hormuz emerges, analysts say it could take months for oil shipments to return to normal levels and for fuel prices to go down. Backed-up tanker traffic, shipowners concerned about another sudden escalation, and energy infrastructure damaged during the war are factors that could impede production and shipment volumes from returning to pre-war levels.

A gallon of regular gas cost an average of nearly $4.05 a gallon in the U.S. on Sunday, according to motor club federation AAA. That’s about 8 cents lower than a week ago, but far higher than $2.98 before the war.

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Distress call captures tanker under fire, Iran shuts Hormuz trapping thousands of sailors

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Distress call captures tanker under fire, Iran shuts Hormuz trapping thousands of sailors

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Hundreds of commercial tankers are stranded on both sides of the Strait of Hormuz after Iran shut the critical chokepoint on April 18, halting traffic and leaving crews trapped amid reports of gunfire and “traumatic experiences” on board.

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The Strait of Hormuz is considered an international waterway under international law, through which ships have the right of transit passage, according to the United Nations Convention on the Law of the Sea (UNCLOS).

Roughly one-fifth of the world’s oil supply passes through the Strait of Hormuz, making it a critical chokepoint for global energy markets, according to the U.S. Energy Information Administration.

The U.K. Maritime Trade Operations (UKMTO) said Iranian gunboats opened fire on a tanker the same day, while a projectile struck a container vessel, damaging cargo.

STARMER AND MACRON ACCUSED OF ‘PLAYING AT BEING RELEVANT’ WITH STRAIT OF HORMUZ PLAN

U.S. Central Command said Tuesday that “U.S. Navy guided-missile destroyers are among the assets executing a blockade mission impacting Iranian ports.” (CENTCOM)

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Audio released by maritime monitoring group TankerTrackers appears to capture the moment a vessel and its crew came under fire while approaching the strait, including a distress call from a crew member.

“Sepah Navy! Motor tanker Sanmar Herald! You gave me clearance to go… you are firing now. Let me turn back!” the crew member can be heard saying in the recording, according to TankerTrackers.

Iranian state media confirmed that shots were fired near vessels to force them to turn back, while the Ministry of External Affairs of the Government of India said the foreign secretary was deeply concerned.

Hapag-Lloyd, the world’s fifth-largest container shipping line, told Fox News Digital that it had activated a crisis team as its crews remain stuck on board vessels in the region.

“We have been working from Friday afternoon until today with the entire crisis team to bring the vessels out — in vain, unfortunately,” said Nils Haupt, senior director of group communications at Hapag-Lloyd AG.

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“These events can easily lead to traumatic experiences. There is also a significant risk from sea mines, which has made insuring vessels for passage through the Strait nearly impossible.”

LISA DAFTARI: HORMUZ WHIPLASH PROVES TEHRAN CAN’T HONOR ANY DEAL IT SIGNS

“The crews are well, but they are becoming increasingly impatient and frustrated. It is very unfortunate that we could not leave today,” he added. “Many ships are still stuck in the Persian Gulf.”

“Our six ships are anchored near the port of Dubai, and all crews hope for an improvement in the situation,” Haupt said.

The Islamic Revolutionary Guard Corps (IRGC) said on April 18 that the strait would remain closed until the U.S. lifts its blockade on Iranian ports, warning ships not to move from anchorage or risk being treated as “enemy” collaborators.

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Iran has previously argued that restrictions on its oil exports and shipping amount to “economic warfare,” framing actions in the Strait of Hormuz as a response to foreign pressure on its economy, according to statements from Iranian officials and state media in past incidents.

“Approaching the Strait of Hormuz will be considered cooperation with the enemy, and any violating vessel will be targeted,” the IRGC said in a statement carried by the semi-official Tasnim News Agency.

TRUMP ORDERS A BLOCKADE IN THE STRAIT OF HORMUZ AS TENSIONS WITH IRAN SOAR

Fishing boats dot the sea as cargo ships, in the background, sail through the Arabian Gulf toward the Strait of Hormuz off the United Arab Emirates, Friday, March 27, 2026. (AP Photo)

The United States imposed the blockade on Iranian ports to pressure Tehran to reopen the strait, with U.S. Central Command saying the measures are being enforced “impartially against all vessels.”

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Hapag-Lloyd said its vessels have been stuck for weeks following the initial closure after the outbreak of war with Iran on Feb. 28.

“For us, it is critical that our vessels can pass through the strait soon,” Haupt said.

“We offer all crew members unlimited data so they can video call loved ones and access entertainment. Crews are strong, but after weeks on board there is growing monotony and frustration.”

“One crew experienced a fire on board from bomb fragments. Others have seen missiles or drones near their vessels,” he added.

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“They are resilient, but each additional day makes the situation more difficult, more monotonous, and more stressful.”

President Donald Trump said Iran had agreed not to close the strait again but after the closure, Trump called the situation “blackmail” and said the U.S. would not back down.

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Schools, shops shut in northern Israel to protest the Lebanon ceasefire

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Schools, shops shut in northern Israel to protest the Lebanon ceasefire

Shops and schools shut in northern Israel as residents protested a 10-day ceasefire with Lebanon that took effect on April 16, saying “nothing was achieved”. Israeli officials say operations may continue, with forces still deployed inside southern Lebanon.

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