US Imposes Sanctions on Chinese Firms Linked to Iranian Drones and Military Aircraft

On Tuesday, the United States unveiled a new round of sanctions targeting Chinese, Iranian, Russian, and Turkish companies and individuals believed to be involved in providing equipment for Iran’s drone and military aircraft development programs.

The sanctions specifically focus on a Chinese company and two individuals. Shenzhen Jiasibo Technology Co., Ltd. is cited for its role in facilitating the supply of critical components that could potentially be used in the manufacture of unmanned aerial vehicles (UAVs), including aerospace-grade radar altimeter systems and sensors. These components are suspected to have been supplied to Iran Aircraft Manufacturing Industrial Company, according to a statement from the U.S. Treasury Department.

Brian E Nelson, Treasury’s under-secretary for terrorism and financial intelligence, stated, “Iran’s continued, deliberate proliferation of its UAVs enables Russia, its proxies in the Middle East, and other destabilizing actors to undermine global stability.” He emphasized that the U.S. will persist in its efforts to counter Iran’s UAV procurement networks, calling upon other nations to exercise due diligence to prevent the export of these components to Iran.

In March, the Treasury Department had already designated five China-based entities and an individual for their alleged involvement in supplying aerospace components to the Iranian drone manufacturer. The Iranian drones, specifically the Shahed-136 model produced by the Iran Aircraft Manufacturing Industrial Company, were linked to attacks on oil tankers. Furthermore, the U.S. claimed that the Shahed-136 model had been sold to Russia and was utilized in the conflict in Ukraine.

Among the Chinese entities previously targeted were Hangzhou Fuyang Koto Machinery Co., Raven International Trade, S&C Trade PTY Co., Shenzhen Caspro Technology Co., and Guilin Alpha Rubber and Plastics Technology Co.

In the latest round of sanctions, two Chinese individuals were designated: Dong Wenbo, director and controlling shareholder of China-based Guilin Alpha, and Su Chunpeng, owner and managing director of Shenzhen Jiasibo.

Additionally, the U.S. Treasury imposed sanctions on three individuals in Iran, three entities in Russia, and two individuals in Turkey.

This move comes amid ongoing concerns regarding Iran’s involvement in the conflict in Ukraine, which Iran has repeatedly denied. The State Department emphasized that Iran will be held accountable for its actions, citing Iran’s UAV procurement, development, and proliferation as destabilizing factors in the Middle East and as supporting Russia’s war against Ukraine.

These sanctions were announced shortly after the release of five Americans held in Iranian custody, with the United States agreeing to unfreeze approximately $6 billion in Iranian assets as part of the deal.

The increased defense ties between Iran and Russia, as well as Russia’s growing military cooperation with China, have raised concerns about a unified power bloc comprising authoritarian regimes aiming to challenge U.S. influence and reshape the global order. The White House has not confirmed whether China coordinated arms sales with Russia, but experts have noted a convergence of interests among these countries that poses a challenge to the international order as it stands.