U.S. Imposes Sanctions on 26 Foreign Firms Linked to Military Programs in China, Iran, Pakistan, and Russia

On Wednesday, U.S. sanctions took effect against 26 foreign companies tied to military programs in China, Iran, Pakistan, and Russia. The sanctions target 16 Pakistani entities, six Chinese firms, three companies from the United Arab Emirates (UAE), and one Egyptian company.

The companies, now listed on the U.S. Commerce Department’s Entity List, face stringent licensing requirements for the export, reexport, or in-country transfer of specific items, with most license applications likely to be denied. The Bureau of Industry and Security (BIS) announced the sanctions earlier this week, aiming to curb the spread of sensitive U.S. technology to adversarial military programs.

Among the Pakistani firms sanctioned, seven were implicated in contributing to the country’s ballistic missile program, while nine others were linked to the Advanced Engineering Research Organization, a front group for Pakistan’s missile and drone programs, which was previously sanctioned in 2014.

Six Chinese firms were sanctioned for acquiring U.S. technology to support Beijing’s military modernization efforts, evading end-use checks, and procuring items for Iran’s weapons of mass destruction (WMD) and drone programs. Among these, Hong Kong-based Small Leopard Electronics was penalized for obstructing U.S. Commerce Department investigations, while Shenzhen Dragonfly Supply Chain was sanctioned for supplying goods to Iran.

The BIS also sanctioned three UAE-based firms and one Egyptian company for circumventing U.S. sanctions and export controls imposed on Russia following its 2022 invasion of Ukraine.

“These sanctions send a message to malicious actors that if they violate our controls, they will pay a price,” said Alan F. Estevez, Under Secretary of Commerce for Industry and Security. Thea D. Rozman Kendler, Assistant Secretary of Commerce for Export Administration, emphasized that Iran’s WMD and drone programs, along with Pakistan’s ballistic missile program, pose significant threats to U.S. national security.

The sanctions followed recent Treasury Department actions targeting two Chinese firms involved in the development of Russia’s Garpiya long-range attack drones, marking the first U.S. sanctions against Chinese entities collaborating on complete weapons systems with Russian companies.

On the same day, the BIS lifted sanctions on two companies: China-based Hefei Bitland Information Technology, which dissolved after being implicated in human rights abuses in Xinjiang, and Canadian software firm Sandvine, which had supplied technology for web censorship in Egypt. Sandvine stated that its removal from the list reflects its commitment to ethical practices and its transition to serving only democratic countries.