By Pishtaz | 2024-10-29

The US Department of Commerce’s Bureau of Industry and Security (BIS) sanctioned six Chinese companies on October 21 for "activities contrary to US national security and foreign policy."

The move came as part of a wider tranche of sanctions that also targeted entities in Egypt, Pakistan and the United Arab Emirates (UAE).

In total, the bureau listed 26 entities accused of violating export controls, involvement in weapons programs of concern, and evasion of US sanctions and export controls on Russia and Iran.

The six Chinese firms were added for acquiring US-origin items in support of China's military modernization and for "dilatory and evasive conduct during end-use checks," it said in a statement.

They also are accused of "procurement of US-origin items for Iran’s weapons of mass destruction (WMD) and unmanned aerial vehicle (UAV) programs," it said.

“We are vigilant in defending US national security from bad actors who seek to evade US sanctions and export controls,” said Under Secretary of Commerce for Industry and Security Alan F. Estevez.

The sanctions "send a message to malicious actors that if they violate our controls, they will pay a price," he said.

Facilitating Houthis' attacks

The move "sheds light on the complex web of global supply chains that Moscow and Tehran are using to circumvent Western sanctions and export restrictions in their race to bulk up their militaries," per an October 21 Politico report.

The BIS blacklisting follows US Treasury sanctions rolled out October 2 on key procurement operatives and suppliers in Iran and China who have helped the Houthis manufacture, maintain and deploy advanced missiles and drones.

The Houthis use a network of international shipping and logistics companies to transport military-grade components from third-country suppliers to their forces in Yemen, the Treasury said.

They source these items from a range of China-based companies, including logistics and international shipping firm Shenzhen Boyu Imports and Exports Co., Limited, which has facilitated multiple shipments to the Houthis, it said.

Analysts note that China has been a key beneficiary of the Iran-backed Houthis' attacks in the Red Sea, as Chinese shipping companies operate with near-total immunity thanks to their "special relationship" with the militant group.

In January, the Houthis promised Chinese and Russian ships safe passage through the Red Sea -- though they went on to hit ships linked to both nations with missiles, likely in error.

Even so, the Houthis' selective targeting has allowed Chinese ships to navigate the Red Sea with fewer interruptions compared to other nations' vessels.