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The US Government has issued sanctions targeting Chinese companies for allegedly acting as front firms to procure restricted components for Iran’s drone and missile programs.
Some shit you should know before you read: Over the last three years, the United States has imposed multiple rounds of sanctions on Chinese companies for allegedly supplying components, technology, and equipment to Russia in support of its war in Ukraine. US officials have accused Chinese firms of providing dual-use goods, such as semiconductors, drone parts, and advanced materials, that have been critical to Russia’s military-industrial complex despite Western export controls. Reports have also pointed to Chinese entities helping Russia circumvent sanctions by facilitating financial transactions and rerouting shipments through third countries. Despite the claims, China has repeatedly denied these allegations, insisting that China does not provide lethal aid to Russia and that its trade with Moscow remains within the bounds of international law.

What’s going on now: Just like they did with Chinese companies assisting Russia’s military-industrial complex, the United States Treasury announced a new wave of sanctions targeting six Chinese companies for allegedly helping Iran procure key components for its drone and ballistic missile programs. According to the Treasury Department’s Office of Foreign Assets Control (OFAC), these companies operated as front firms to acquire US-made and Western-origin electronic components, including micro servos, radio frequency connectors, valve assemblies, and aircraft parts, which were then shipped to Iran. The sanctioned entities are accused of working on behalf of Pishtazan Kavosh Gostar Boshra (PKGB) and its subsidiary Narin Sepehr Mobin Isatis (NSMI)—Iranian companies that have been central to Tehran’s UAV and missile programs. According to the Treasury, these firms facilitated millions of dollars worth of transactions, allowing Iran to circumvent existing restrictions and continue advancing its weapons programs.

In a statement, Treasury Secretary Scott Bessent said, “Iran continues to try to find new ways to procure the key components it needs to bolster its UAV weapons program through new front companies and third-country suppliers.” He added that the “Treasury remains committed to disrupting the schemes that enable Iran to send its deadly weapons abroad to its terrorist proxies and other destabilizing actors.”
China reacts: In a statement, an embassy spokesman for China’s embassy said, “China and Iran’s normal cooperation within the framework of international law is reasonable and legal. China has always firmly opposed the illegal unilateral sanctions imposed by the United States and will firmly safeguard the legitimate rights and interests of its enterprises and citizens.”
The newly sanctioned firms include Dingtai Industrial Technology Co. Limited, Yonghongan Trade Limited, Hong Kong Tianle International Co. Limited, DDC Develop Industry Hong Kong Limited, Shenzhen Zhiyu International Trade Co. Ltd., and JP Oriental International Holdings Limited.