China still exporting drone parts to Iran despite US sanctions: WSJ

Chinese companies are openly shipping dual-use goods essential for drone production to factories in Iran and Russia, according to The Wall Street Journal.

Obscure exporters are providing items such as engines, batteries, microchips, fiber-optic cables, and gyroscopes, which support the manufacturing of unmanned aerial vehicles, including variants of Iran’s Shahed-136 kamikaze drones.

Chinese customs data indicate that hundreds of containers of these components have been dispatched to both nations.

Shipments have reportedly increased during periods of heightened military activity, such as surges in Russian drone operations and Iranian strikes.

This flow persists notwithstanding US sanctions and export controls designed to disrupt such supply chains.

One notable example involves Xiamen Victory Technology, a small Chinese firm that has marketed German-designed L550 drone engines linked to Shahed-136 models.

The company promoted these products on its website during recent regional conflicts and extended offers via email amid US-Iran tensions.

US officials express ongoing frustration with the challenge of interdicting these transfers.

Drones rely heavily on commercially available parts that integrate easily into global supply chains.

Many Chinese suppliers are small entities with minimal exposure to Western financial systems, enabling them to operate with relative impunity, according to the WSJ.

While earlier evasion tactics involved mislabeling shipments, current practices appear more overt.

China has increasingly become a direct source of domestically produced components, moving beyond its previous role as a transit hub for Western-origin technology.

The US Treasury Department has imposed sanctions on various Chinese entities and networks involved in such activities in recent years.