The US State Department's designation, announced on Thursday, bars Zhao and his immediate family members from entry into the United States.
In a statement, a State Department official said Zhao was sanctioned 'for his involvement in significant corruption on behalf of China-based actors'. The official added that Zhao 'abused his public position by paying bribes to Fijian citizens to advance China-based government, business, and criminal interests' and that his actions 'constituted significant corruption and adversely affected US interests in Fiji'.
Officials in Canberra, speaking on the condition of anonymity, confirmed that the AFP and ACIC provided critical intelligence to US agencies to inform the sanction.
Zhao has been a priority target for Western intelligence agencies for years. Two years ago, Australian media outlets and the 60 Minutes program revealed Australia's peak criminal intelligence body had secretly listed him as one of its highest priority targets. He has been investigated over allegations that he operates as a regional crime boss and works to entrench Chinese Communist Party influence in Suva and across the South Pacific.
The action by Washington highlights the ongoing battle for influence in the region. It also underscores the challenge Canberra faces in responding to security threats in the South Pacific, where corruption and organised crime increasingly intersect with geopolitical competition.