By Faisal Abu Bakr | 2025-10-15

The United States has imposed new sanctions on an Iranian operative and three Chinese companies, exposing a covert international smuggling network that fuels the Houthi militia’s growing missile and drone capabilities.

The network, officials said, plays a direct role in enabling the group’s escalating attacks on civilian vessels in the Red Sea and destabilizing maritime trade routes critical to global commerce.

On October 2, the US Treasury Department’s Office of Foreign Assets Control (OFAC) designated Iranian national Hassan al-Kuhlani and three Chinese firms -- Shenzhen Boyu Imports and Exports Co., Ltd., Shenzhen Jinghon Electronics Limited, and Shenzhen Rion Technology Co., Ltd. -- for their role in supplying the Houthis with dual-use technologies.

These materials are key to the development, maintenance, and deployment of advanced missiles and unmanned aerial vehicles (UAVs).

"These sanctions expose a crucial, hidden structure of smuggling and technical support networks that the Houthis rely on," said political analyst Mahmoud al-Taher.

"These networks span from Tehran to Beijing, utilizing complex maritime routes," he told Al-Fassel.

He also added that the Houthis act as "a military arm of an expansionist Iranian regime" that uses front companies to smuggle sensitive technology into Yemen.

The group’s attacks on civilian ships are not local or random, he said, "they are a direct result of external technical support that has enabled the group to develop drones and precision missiles."

Houthi maritime attacks have caused extensive economic harm, said political analyst Wadah al-Jalil.

"Their actions have harmed many national economies, hiked the cost of insurance and transport, and caused significant losses for companies. Consequently, the US response through sanctions was expected," he added.

Iran’s and China's direct role

The sanctions targeting Al-Kuhlani highlight the Iranian regime’s direct role in enabling Houthi operations.

"They expose Iran's direct role in managing the battle inside Yemen, encompassing not just political control but also extensive logistical and technical support," al-Taher said.

Intermediaries such as Al-Kuhlani link Iran’s Islamic Revolutionary Guard Corps (IRGC) directly to the Houthi militia.

"This proves that Tehran is strategically leveraging Yemen to threaten regional and international security, just as it does through its other proxies across Iraq, Lebanon, and Syria," he added.

China’s role has also come under scrutiny.

By providing dual-use technologies to the Houthis, the three sanctioned Chinese companies have undermined international security standards.

"Despite championing ‘non-interference,’ China now faces moral and political scrutiny regarding the role of its private companies in fueling conflicts that destabilize global maritime security," al-Taher said.

"Undercuts Beijing's standing as a responsible international power and highlights the urgent need for stricter global oversight of companies dealing in precision and sensitive technologies," he said.