As the conflict escalates since March 5 involving attacks between the United States, Israel and Iran, an unexpected development has emerged from China when a small company is accused of openly marketing drone components to Iran.
A Xiamen-based company, Xiamen Victory Technology, sent emails to Iranian authorities expressing support for Tehran, while also offering flight engines for attack drones.
The engines were identified as Limbach L550, a German-made component that the United States has banned from selling to Iran and Russia.
They are a key component in Iran's Shahed-136 drone, which has also been widely used by Russia in the conflict in Ukraine.
The company also reportedly posted images of drones resembling the Shahed model on its website, indicating its open involvement in the military technology supply chain.
The situation reflects the growing challenge for Washington in restricting the flow of dual-use goods, i.e. components that can be used for both civilian and military purposes.
Chinese customs data shows that hundreds of containers of goods such as engines, computer chips, fiber optic cables and gyroscopes continue to be shipped to Iran and Russia.
While there have been previous attempts to hide shipments through false labeling, recent trends suggest that some exporters are no longer trying to evade Western sanctions. The development has raised concerns among security officials and arms analysts.
China is seen as playing a key role in this chain, not only as a hub for the re-distribution of Western components, but also as an alternative producer through small-scale local factories that are less affected by international sanctions.
The email sent by Victory Technology accidentally reached Iran Watch, a project under the Wisconsin Project on Nuclear Arms Control that monitors Iranian proliferation activities. The information was then shared with international media.
A company representative, who identified himself as Kristoff Chen, claimed that they had only started selling engines this year and had not made any exports to Iran or Russia. He also said that the marketing emails were generated using artificial intelligence technology.
This incident underscores a new reality in global geopolitics, where economic sanctions are increasingly difficult to enforce in an era of open technology and complex supply chains.
