Chinese sanctioned by U.S. for aiding Iran missile development

In a statement, Stuart Jones, an acting assistant secretary at State, said the administration would continue to waive sanctions as required under the deal, known as the Joint Comprehensive Plan of Action.

The Trump administration is now in the process of reviewing USA policy toward Iran.

Under the sanctions also hit a Chinese citizen and the Chinese company, said the U.S. Treasury Department.

Wendy Sherman, who served as undersecretary of State for political affairs from 2011 to 2015, said that the nuclear deal allows the U.S.to use "all options" if Iran were to backpedal on the deal.

The Treasury on Wednesday also announced new US sanctions against seven people linked to Iran's ballistic missile program, including two senior defense officials and a China-based network that supports Iran's military.

Remaining, unilateral USA sanctions imposed over Iran's record on human rights, terrorism and ballistic missiles development has scared many would-be foreign investors seen as indispensable to reviving an economy stunted by many years of isolation.

US President Donald Trump on May 17 extended wide sanctions relief for Iran called for under the 2015 global nuclear deal.

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Under these sanctions, tucked into Section 1245 of the 2012 National Defence Authorization Act, the United States threatened to sanction the banks of Iran's main oil customers if they did not significantly reduce their purchases of Iranian crude.

This has been a major issue in the Iranian election, with hardliner Raisi accusing Rouhani of making too many concessions without gaining any economic benefits. The move to extend sanctions relief in the meantime is another indication Trump may be laying the groundwork to let the deal stand.

China has complained repeatedly to the United States about unilateral sanctions against Chinese individuals and companies linked to either Iran or North Korea's nuclear or missile programmes. The designations also make it illegal for US banks, companies or citizens to do do business with them.

Iran, which has been accused of exposing sectarian fault lines in the region, especially in Yemen, Syria and Iraq, tried to soften its rhetoric as Rouhani said there should be greater unity between Shiites and Sunnis and that they had coexisted side by side peacefully for hundreds of years. It also has clinched bigger deals with trans-Atlantic rivals Airbus and Boeing. "At least as of now, it appears that drastically changing United States economic sanctions on Iran is taking a back-seat to domestic concerns", he said.

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