US Blacklists China-Linked Network Over Iran Drone Supply Chain
Washington— The United States on Friday imposed sanctions on 10 individuals and companies, including entities based in China and Hong Kong, accusing them of helping Iran procure weapons components and raw materials used in the production of Tehran’s Shahed military drones, the Treasury Department said.
The sanctions target what U.S. officials described as a procurement network supporting Iran’s defense sector amid continuing regional tensions and stalled diplomatic efforts tied to the conflict involving Tehran and its regional allies.
The Treasury Department said the measures were aimed at entities and individuals allegedly involved in facilitating the acquisition of sensitive materials and technology for Iran’s military-industrial apparatus, including components linked to the production of Shahed unmanned aerial vehicles.
The action comes days before U.S. President Donald Trump is expected to travel to China for talks with Chinese President Xi Jinping, at a time when negotiations tied to the broader Iran conflict have shown little progress.
“Under Trump’s decisive leadership, we will continue to act to Keep America Safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.
The Treasury did not immediately disclose the full list of sanctioned parties in the initial announcement, but said several of the targeted entities operated from China and Hong Kong and were involved in supplying materials tied to Iran’s drone manufacturing capabilities.
Iran’s Shahed drones have become a central component of the country’s military strategy and have drawn international scrutiny over their deployment across regional conflicts. Western governments have repeatedly accused Tehran of expanding its drone production and export networks despite existing sanctions regimes.
The latest measures freeze any U.S.-based assets belonging to the designated parties and generally prohibit Americans from conducting business with them. Secondary sanctions risks may also apply to foreign financial institutions engaging with sanctioned entities.
Washington has steadily expanded sanctions targeting Iran’s defense procurement channels since the outbreak of heightened regional hostilities, focusing increasingly on overseas intermediaries and companies accused of supplying dual-use technology and industrial materials.
