China denies reports SMIC sent chipmaking tools to Iran

China on Friday denied reports that chipmaker SMIC sent chipmaking tools to Iran, calling recent media claims false and misleading.

China on Friday rejected reports that its top chipmaker, SMIC, sent chipmaking tools to Iran, calling the claims “false information” after recent media reports alleged such transfers had taken place over the past year. Chinese Foreign Ministry spokesman Lin Jian said Beijing had reviewed the reports and found them to be untrue.

The denial came after Reuters reported that two senior U.S. officials said SMIC had supplied chipmaking equipment to Iran’s military and that the shipments may still be continuing. The officials also said the cooperation likely included technical training, though they did not say whether the tools were of U.S. origin.

SMIC, China’s largest contract chipmaker, has been under heavy U.S. sanctions since 2020 over alleged ties to the Chinese military and over concerns related to advanced semiconductor development. Any confirmed transfer of restricted technology to Iran would likely intensify already high tensions between Washington and Beijing.

Beijing has maintained close diplomatic and economic ties with Tehran during the current crisis, but it has not publicly provided direct military support to Iran since the war escalated following U.S. and Israeli strikes. Chinese officials have instead repeatedly called for a ceasefire, negotiations and restraint from all sides.

The issue is especially sensitive because semiconductors and chipmaking tools are central to both civilian industry and modern military capability, including surveillance, communications and missile-related systems. Western governments have increasingly tried to limit access to such technology for countries seen as strategic rivals or sanctions targets.

China has long opposed what it calls the politicisation of trade and technology, and it frequently rejects Western allegations involving dual-use exports. But U.S. officials have become increasingly focused on whether Chinese commercial networks are helping sanctioned states acquire sensitive industrial capabilities.

The dispute also comes at a time when Washington is closely watching Beijing’s broader posture in the Middle East conflict, where China has tried to position itself as a diplomatic actor while avoiding direct entanglement. Any evidence of covert strategic support to Iran could complicate that balancing act.

For now, China’s response reflects an effort to contain diplomatic fallout and push back against accusations that could deepen geopolitical friction. But the competing claims are likely to keep scrutiny on China-Iran technology links high in the weeks ahead.

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