The United States has decried China Ocean Shipping (Group) Company for purportedly shutting off the tracers on its tankers, in response to their sanctions introduced in late September, according to senior US officials quoted by Reuters.
The officials said that the Trump Administration qualifies COSCO's move as 'dangerous behaviour'.
Washington has also warned shipping companies involved in the transportation of Iranian crude to avoid shutting off transponders, the source added.
Reacting to the statement, the Chinese company stressed that none of its vessels turned off its tracers, adding that the company is adhering to applicable legislation.
The United States slapped sanctions on the Chinese shipping entreprise's subsidiaries in late September, accusing them of violating restrictions on the transport of Iranian crude.
China's Foreign Ministry protested the move saying that China's cooperation with Iran was legitimate and legal.