China Supplying Iran With Drone, Missile Components Amid US Tensions

The Wall Street Journal has revealed that China has continued to supply Iran with components potentially used in drone and missile production, with approximately 1,300 shipments of dual-use goods arriving from China to Iran's Ministry of Defense since the start of 2026 through the end of June. This revelation comes at a sensitive time, particularly as the US and Iran had recently agreed to a 60-day ceasefire on June 17, a period during which China publicly emphasized its role in de-escalating tensions. On the same day as the ceasefire agreement, a plane carrying cargo for Iran's Ministry of Defense landed in Tehran from China, reportedly containing electronic components suitable for drone and missile guidance systems. Further shipments of electronics valued at over six million dollars were registered by Iranian customs two days later, with US authorities noting their potential military applications, including in precision-guided weapon flight control systems.

The WSJ's investigation into customs data indicates these are not isolated incidents. Thousands of shipments of goods potentially usable in drone and weapons manufacturing were sent to Iran from January 2025 to June 2026, including GPS devices, electric motors, and aircraft engine parts destined for the Iranian Ministry of Defense. Many of these shipments were reportedly exempt from customs duties under Iranian regulations for armaments and defense imports. Prior to the US-Iran war on February 28, Iran's customs registered 300 tons of chemical compounds from China for its Ministry of Defense.

Following the outbreak of war, trade between China and Iran initially declined but then saw a resurgence, particularly with Iran expanding air travel to China. The US-sanctioned Mahan Air, accused by the US Treasury of facilitating Tehran's illicit activities, significantly increased its flights from China to Iran, rising from about four per week in early March to approximately 27 by late April, flying from Beijing, Shanghai, and Guangzhou. Concurrently, shipments to Iran's Ministry of Defense accelerated, with some components identified as being used in Iran's Shahed drones. Chinese companies have been observed openly marketing sensitive electronics, including those found in Shahed drones, according to researchers cited by WSJ. In May, the US Treasury sanctioned Chinese and Hong Kong-based companies suspected of aiding Iran's acquisition of weaponry, including man-portable air-defense systems (MANPADS), which Iran is reportedly developing based on older Chinese designs while seeking more modern systems.

Chinese supplies have also impacted Iran's missile program, with companies reportedly providing chemical precursors like sodium perchlorate for solid rocket fuel. These supplies gained importance after Israeli strikes in 2024 damaged Iran's missile infrastructure. One Chinese company, Haokun Energy, reportedly sought confidential government licenses to export sodium perchlorate to an Iranian importer, establishing a separate company in Beijing for the transaction, though WSJ could not confirm if the shipment occurred. Washington continues to sanction Chinese entities suspected of aiding Iran's military, having imposed hundreds of measures since the war began. Despite US sanctions, China remains Iran's primary oil buyer, accounting for over 80% of its oil exports, with transactions often conducted in yuan through a network of Chinese banks and Hong Kong-registered companies to circumvent US oversight. Even with a US naval blockade, Iranian oil shipments to China have continued, with Kpler estimating four million barrels arrived in the first week of the US 'Economic Outcast' operation. Mahan Air's flight frequency also doubled in early September, with many flights appearing to be cargo-only.

Furthermore, US officials believe Iran utilized Chinese satellite imagery before and after the July 17 attack that killed three US soldiers, with the US having previously sanctioned three Chinese companies for providing satellite data that could have aided Iran in targeting. Beijing denies involvement, stating it adheres to international rules and opposes attempts to link China to the conflict, while asserting its control over dual-use exports and rejecting unilateral US sanctions. Iranian officials did not respond to requests for comment.