On Thursday, the US State Department blamed the Chinese satellite company Chang Guang Satellite Technology of directly assisting Iran-backed Houthi rebels in targeting US warships and other international vessels in the Red Sea. The company, which is reportedly connected to China's military, is alleged to have provided satellite imagery used in the attacks. State Department spokesperson Tammy Bruce, confirming a report by the Financial Times, stated that Chang Guang's actions were an "unacceptable" form of support for terrorism, despite ongoing US diplomatic efforts to raise the issue with China.

"China consistently attempts ... to frame itself as a global peacemaker ... however, it is clear that Beijing and China-based companies provide key economic and technical support to regimes like Russia, North Korea, and Iran and its proxies," Bruce stated this during a press conference.

The Chinese Embassy in Washington stated they were not aware of the matter, and the satellite company has not yet made a statement. This accusation comes at a time when tensions between the US and China continue to rise, with both countries still in disagreement over trade, military power, and global security. The Trump administration has escalated the trade conflict with China by imposing a significant 245 per cent tariff on all Chinese goods entering the US, following China's recent retaliatory actions.

In a fact sheet issued late Tuesday, the White House reaffirmed its strong trade position, explaining that President Trump was taking action in response to countries imposing "unfair" taxes on the U.S. The new tariffs follow a short break during which over 75 countries entered talks to reach new agreements with the U.S. The White House also highlighted that the judgment was made on Liberation Day, symbolising a key moment in Trump’s ongoing effort to "level the playing field" in global trade.