Cracking Down on Compliance: New US Sanctions Hit Chinese and Iranian Tech Giants

The US imposed sanctions on five individuals and seven companies from China, Hong Kong, and Iran on Tuesday, July 30.

Reports indicate that sanctions have been imposed on individuals and companies accused of supplying essential components for Tehran’s ballistic missile and drone programs.

Who’s on the List?

The Treasury Department accused the designated entities of procuring critical components for the Iranian Ministry of Defense and Armed Forces Logistics (MODAFL), a key player in the country’s weapons development.

Specifically, these components, including accelerometers and gyroscopes, are essential for the guidance, navigation, and control systems of Iran’s ballistic missiles and unmanned aerial vehicles (UAVs).

Beijing SNTD and its Network

Among the sanctioned entities is Beijing Shiny Nights Technology Development Co., Ltd. (Beijing SNTD), a Chinese front company identified as a key player in actively procuring these components.

Beijing SNTD was allegedly acquiring electronics and equipment on behalf of Iranian end-users, including the sanctioned MODAFL subsidiary, Iran Electronic Industries (IEI).

Central to this operation is Sayyed Ali Seraj Hashemi, an Iranian national employed by Beijing SNTD. Based in both Iran and China, Hashemi has played a pivotal role in coordinating the procurement of sensitive components, including accelerometers and gyroscopes, essential for Iran’s missile guidance systems. His collaboration with Saeed Hamidi Javar, an Iranian procurement agent, has been instrumental in this effort.

Javar, the managing director of Buy Best Electronic Pars Company (BBEPC), has facilitated the procurement of missile-applicable components for Beijing SNTD.

BBEPC, with operations in both Iran and China, has also been involved in procurement activities for Iran’s Aerospace Industries Organization (AIO), a key MODAFL subordinate overseeing the country’s ballistic missile programs.

SAPA: Iran-Based Network Facilitating Missile and Drone Programs

Another is Electro Optic Sairan Industries Co. (SAPA), an Iranian firm implicated in the scheme.

SAPA has been a key player in Iran’s military-industrial complex, providing equipment and technology to the MODAFL for its ballistic missile programs. Its involvement in the development of the Shahed-series UAVs for the OFAC-designated Shahed Aviation Industries Research Center (SAIRC) also highlights its direct contribution to Iran’s drone program.

However, SAPA’s procurement network extends beyond Iran’s borders.

SAPA official Mohammad Abdollahi has worked closely with Hong Kong-based Thomas Ho Ming Tong to source critical optical components.

Tong allegedly utilized three companies based in Hong Kong and mainland China – Technology Company Limited (Tas Technology), Cloud Element Company Limited (Cloud Element), and Btw International Limited (Btw International) – to acquire components such as optical gratings, reflecting beam expanders, and mounted lens arrays for SAPA and handle the associated payments. The Hong Kong-based associate also holds a director position at Bright Shore Inc Limited (Bright Shore).

Additional Entities Targeted

The US also sanctioned Iran-based Azmoon Pajohan Hesgar (APH), a test equipment manufacturer involved in procuring electronic components and missile-applicable items, including gyroscopes, for Iran’s military. APH’s managing director, Ezzatullah Ghasemian Sorbani, was also sanctioned for his role in these activities.

In addition, China-based Shenzhen Rion Technology was designated to supply equipment to Beijing SNTD. The company’s expertise in navigation systems, including those with UAV applications, underscores its potential contribution to Iran’s expanding drone capabilities.

Continued Crusade to Disrupt Iran’s Weapons Proliferation

Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian Nelson emphasized the US commitment to countering Iran’s weapons proliferation activities.

“Today’s action exposes additional key front companies and trusted agents through which Iran has sought to acquire these components,” Nelson stated in Tuesday’s press release. “The United States will continue to impose costs on those that facilitate Iran’s ability to produce these deadly weapons.”

The sanctions imposed on Tuesday are the latest in a series of measures undertaken by the US government to target individuals and entities supporting Iran’s ballistic missile and UAV programs.

The State and Treasury Departments have previously designated numerous actors involved in these activities, demonstrating a concerted effort to curtail Tehran’s military capabilities.

Tensions Escalate: US Tightens Grip on Iran’s Activities

The move comes amid heightened tensions between the US and Iran over a range of issues, including Tehran’s nuclear program and support for proxy groups in the region.

Analysts believe the sanctions are aimed at sending a strong message to Iran and its supporters that the US will not tolerate activities that destabilize the Middle East.

It remains to be seen how Iran and the sanctioned entities will respond to the latest sanctions. However, the US government has signaled its intention to maintain pressure on Tehran until it changes its behavior.

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