New U.S. Sanctions on Iran Reveal China’s Growing Role in Illicit Supply Chains

New U.S. Sanctions on Iran Reveal China’s Growing Role in Illicit Supply Chains
U.S. President Donald Trump, with Treasury Secretary Steven Mnuchin and Vice President Mike Pence, after signing an executive order to increase sanctions on Iran, at the White House, Washington, June 24, 2019 (AP photo by Alex Brandon).

Editor’s Note: Guest columnist Neil Bhatiya is filling in for Stewart Patrick this week.

On July 18, in the Trump administration’s first punitive measure since Iran announced earlier this month that it would exceed the levels of enriched uranium permitted under the international nuclear deal, the United States expanded sanctions against Tehran to include a network of international companies it said were linked to procuring materials for Iran’s nuclear program. In announcing the sanctions, U.S. Treasury Secretary Steven Mnuchin said his department was “taking action to shut down an Iranian nuclear procurement network that leverages Chinese- and Belgium-based front companies to acquire critical nuclear materials and benefit the regime’s malign ambitions.”

The move may signal more recognition of how illicit financial actors are coming up with new ways to get around international sanctions. If states want to seriously curtail nuclear proliferation and the spread of weapons of mass destruction, they will need to reckon with how the landscape of international threats is changing, particularly the increasingly central role that China will come to play in licit and illicit supply chains.

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