China’s aggressive policies have reached increased in recent years arming the IRGC, fueling terrorism. The latest U.S. Department of State actions, including a $15 million bounty announced on March 19 through the Rewards for Justice program, provide a stark reminder of Beijing’s relentless pursuit of illicit gains and its dangerous willingness to undermine international security. By enabling the diversion of dual-use technology to Iran and supporting the financial networks of the Iranian Revolutionary Guard Corps (IRGC), China is not only flouting international law but also fueling terrorism and destabilizing the global order.
The U.S. State Department’s recent announcement targets a sinister network of Chinese nationals who have, for years, exploited business fronts in China to acquire export-controlled dual-use electronic components from the United States. These components—critical for the production of sophisticated military equipment such as unmanned aerial vehicles, ballistic missiles, and other high-tech weapons systems—have been funneled to IRGC-linked companies in Iran. This operation, stretching back to at least 2007, has allowed Iran to circumvent U.S. sanctions, spend millions of dollars globally, and continue supporting proscribed proxy militias like Hamas and Hezbollah.
It is essential to understand that this operation was not a rogue act by a few isolated criminals. Instead, it was a calculated, years-long scheme that saw key Chinese operatives—individuals known by names such as Liu Baoxia (also known as Emily Liu), Li Yongxin (Emma Lee), Yung Yiuwa (Stephen Yung), and Zhong Yanlai (Sydney Chung)—systematically undermining the U.S. sanctions regime. Their actions directly bolster the financial mechanisms of the IRGC, an organization that, according to U.S. authorities, controls vast segments of the Iranian economy and plays a pivotal role in the country’s politics. This is a clear instance of China’s state-facilitated criminality in the realm of international arms and technology smuggling.
China’s complicity in this illicit trade underscores a broader pattern of behavior. For years, Beijing has not only ignored the legal frameworks that govern international trade but has actively undermined them. The Chinese government’s tacit support—or at the very least its turn of a blind eye—to the operations of these front companies reveals a disturbing disregard for global security norms. By allowing such activities to flourish within its borders, China is effectively providing a safe haven for those who seek to destabilize regional and international security for financial gain.
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The implications of these actions are profound. The dual-use technologies in question, originally developed for civilian purposes, have been diverted to support military and terrorist operations. The IRGC, with its vast financial resources derived from arms sales and other ventures, channels these gains into funding activities that threaten the stability of entire regions. Whether it is through the production of drones, missile systems, or other advanced weaponry, the end use of these components contributes directly to an environment in which terrorism can thrive. This is not merely a matter of illegal trade—it is a calculated strategy to empower militant actors who destabilize governments and imperil the safety of civilians worldwide.
The U.S. Department of Justice previously indicted the four Chinese nationals on charges of conspiracy to undermine the International Emergency Economic Powers Act (IEEPA), trafficking goods from the United States, and using false export information. Their alleged activities span over a decade, highlighting a disturbing trend: Beijing’s willingness to support networks that erode international norms and threaten global stability. When a state-sponsored enterprise or operatives enjoy impunity while engaging in the systematic undermining of export controls and sanctions, it sets a dangerous precedent for global commerce and security.
China’s actions are not confined to the realm of covert technology smuggling. The country’s retaliatory measures in the wake of U.S. export controls further illustrate Beijing’s belligerence on the international stage. In August 2022, U.S. tech giant NVIDIA was ordered to halt the sale of its high-powered A100, A100X, and H100 graphics processing units to China. These chips are essential components in deep learning and artificial intelligence, areas where technological superiority is rapidly becoming synonymous with military and economic power. Just as the U.S. tightened its grip on advanced semiconductor technologies, China responded swiftly. On December 2, 2024, the U.S. expanded export controls to include 24 types of semiconductors and three groups of production tools, prompting China to ban the exports of critical minerals and so-called “dual use” items with U.S. military applications.
This tit-for-tat exchange is emblematic of a broader strategic calculus. China’s countermeasures are not solely about protecting its own economic interests—they are part of a deliberate strategy to weaken U.S. technological leadership and, by extension, undermine the international order. By aggressively protecting its own supply chains and retaliating against perceived economic aggression, Beijing sends a clear signal: it will not abide by international rules when they conflict with its ambitions. This not only disrupts global markets but also further endangers national security across multiple continents.
The aggressive stance taken by the U.S. Department of State and the subsequent indictments and sanctions should serve as a wake-up call to the international community. China’s actions demonstrate that its government is willing to flout international laws and conventions in favor of pursuing its strategic objectives. By leveraging state-backed networks to facilitate the illegal transfer of critical technologies, China is directly contributing to the proliferation of advanced weaponry among regimes and non-state actors that are hostile to the West and its allies. The end result is a world where the rules-based international order is eroded, and the threat of unchecked state-sponsored criminality grows ever larger.
In light of these developments, the global community must not shy away from condemning China’s brazen disregard for international norms. There is a moral and strategic imperative to hold Beijing accountable for its role in facilitating the proliferation of dual-use technologies that end up in the hands of those who seek to terrorize and destabilize regions. The U.S. and its allies must continue to press for transparency, enforce robust export controls, and ensure that those who benefit from or support these illicit networks face severe consequences.
China’s actions are a direct threat to international security, and its ongoing maneuvers in both the technology and arms markets must be met with decisive and coordinated responses. The world can no longer afford to allow a state to operate with such impunity, effectively undermining global stability for its own strategic gain. The time for complacency is over. The international community must unite in condemning and countering Beijing’s dangerous games, ensuring that the rule of law prevails over the destructive ambitions of a rising authoritarian power.
By enabling the diversion of critical dual-use technology to fuel the military ambitions of terror sponsors like the IRGC, China is laying the groundwork for a more volatile and insecure global future. It is incumbent upon all nations that value democracy, human rights, and international stability to take a firm stand against these practices. The stakes are simply too high to allow China to continue operating unchecked, endangering not just regional, but global peace and security.
