Chinese companies continue to ship drone-related parts and other dual-use goods to Iran and Russia despite US sanctions, the Wall Street Journal reported on Tuesday, citing customs data, former US officials and weapons analysts.
The report said small Chinese firms were openly marketing items including engines, batteries, fiber-optic cables and computer chips that can be used in military drones.
The newspaper highlighted Xiamen Victory Technology, a Chinese company that offered to sell German-designed Limbach L550 engines, which the US has barred from export to Iran and Russia. The engines have been linked to Iran’s Shahed-136 attack drones, which Russia has used in Ukraine, the report said.
The Shahed-136, Iran’s main attack drone, has a range of about 1,000 miles and costs an estimated $20,000 to $50,000 to produce, making it a cheaper alternative to cruise missiles.
According to the Journal, the company sent the marketing email in March during the Iran-Israel war that began in February and has since moved into a ceasefire.
“We are deeply shocked and outraged by the aggression against Iran, and our hearts are with you,” the email said, while promoting the sale of the engines.
Chinese firms adapt to sanctions
China’s Foreign Ministry told the Journal that Beijing enforces controls on dual-use exports in line with its laws and international obligations.
The report said US officials are increasingly concerned because many drone parts are now made in China by smaller firms that have limited exposure to the US financial system and are less vulnerable to sanctions.
The Journal also said Chinese exports of lithium-ion batteries and fiber-optic cables to Russia and Iran rose sharply as both countries expanded drone production and use.
US officials told the newspaper they are also trying to curb Iran’s oil revenue to limit funding for drone and missile programs.
The Wall Street Journal reported that some Chinese firms previously hid shipments through mislabeled cargo or Hong Kong shell companies, but analysts and former officials said some exporters are now acting more openly.
