The growing cooperation between China and Russia, the U.S. Treasury Department on Thursday announced a fresh round of sanctions against two Chinese companies accused of aiding Russia’s war efforts in Ukraine by helping build long-range attack drones. This marks the first time the United States has targeted Chinese firms for directly contributing to Russian military operations in Ukraine.
The sanctions are a part of the Biden administration’s broader strategy to counter Russia’s military advances by severing its access to essential technological support, especially from external sources. The latest action, according to senior administration officials, is an effort to “directly address the activity” between China and Russia, which U.S. intelligence and economic authorities say has become more overt and collaborative.
The two companies facing sanctions are Xiamen Limbach Aircraft Engine Co., a manufacturer of drone engines, and Redlepus Vector Industry, which has facilitated the shipment of drones and other technology to Russia. The sanctions come after months of investigations that revealed these companies’ deep involvement in Russia’s production of long-range Garpiya series attack drones. These drones have played a pivotal role in Russia’s aerial warfare, particularly in targeting critical infrastructure in Ukraine.
The U.S. government had previously accused China of providing indirect support to Russia’s war machine, but this round of sanctions underscores a more direct role in “developing and producing complete weapons systems” in collaboration with Russian defense firms. U.S. officials said that the Garpiya drones, developed with Chinese collaboration, have been deployed to devastate Ukrainian cities, resulting in the destruction of vital infrastructure and contributing to mass casualties.
According to Matthew Miller, a spokesman for the U.S. State Department, “These drones, designed and produced in the People’s Republic of China in collaboration with Russian defense firms, have caused tremendous destruction and suffering during the war in Ukraine.”
In response, the Chinese Embassy in Washington swiftly rejected the accusations, labeling them as false and politically motivated. The embassy’s spokesperson, Liu Pengyu, characterized China’s trade relations with Russia as “open and aboveboard” and consistent with World Trade Organization (WTO) rules and international market practices. He emphasized that China manages the export of military products cautiously, adhering to strict controls on dual-use technology such as civilian-use drones.
“China always handles the export of military products in a prudent and responsible way and strictly controls the export of dual-use articles, including drones for civilian use,” Liu said in a statement. He also criticized the U.S. for what he described as “illegal and unjustifiable unilateral sanctions” and accused Washington of exercising “so-called long-arm jurisdiction.”
In a pointed critique of U.S. actions, Liu accused the United States of hypocrisy, citing its continued military aid to Ukraine. “While the U.S. is supplying large amounts of military aid to Ukraine, it is extremely hypocritical and irresponsible to accuse China of contributing to the conflict,” Liu added.
The sanctions come at a time when Washington is increasingly wary of the strengthening ties between China, Russia, and other U.S. adversaries, including Iran and North Korea. Senior U.S. officials have warned of the dangers posed by this growing axis of cooperation, particularly as it relates to military technology and economic support.
While Beijing has officially maintained a neutral stance on the Ukraine conflict, calling for peace talks and urging restraint from all sides, it has nonetheless provided an economic lifeline to an increasingly isolated Russia. Since Russia’s full-scale invasion of Ukraine in February 2022, China has bolstered its trade relations with Moscow, purchasing Russian oil and gas and engaging in other forms of economic cooperation.
On Wednesday, Chinese Premier Li Qiang met with Russian Prime Minister Mikhail Mishustin on the sidelines of a regional summit, where they discussed expanding economic and defense collaboration. This meeting underscores the deepening ties between the two countries, even as the West tightens its sanctions against Moscow.
While Beijing has avoided outright military support for Russia, the sanctions highlight the fine line China walks between supporting its ally and maintaining plausible deniability about its role in the conflict.
The Treasury Department’s sanctions specifically target Xiamen Limbach Aircraft Engine Co., which produces the engines used in Russia’s Garpiya series drones, and Redlepus Vector Industry, which has been working closely with a Russian company called TSK Vektor to facilitate the shipment of drones and other critical components to Russia.
TSK Vektor, already sanctioned by the U.S. in December 2023, has played a central role in helping Russia acquire attack drones that have been deployed against Ukrainian targets. The Biden administration officials said that the Chinese firms should have known that TSK Vektor was a “problematic actor” given its previous sanctions history.
The sanctions also extend to Artyom Yamshchikov, the general director and owner of TSK Vektor, and TD Vector, another Russian company involved in facilitating these drone shipments. According to U.S. officials, Yamshchikov controls both TSK Vektor and TD Vector, orchestrating the complex logistics behind the transfer of drones and other military equipment from China to Russia.
The latest sanctions are likely to have significant repercussions for China’s defense industry, which has increasingly been under scrutiny for its opaque ties to Russia and other pariah states. By targeting drone manufacturers and other technology firms, the U.S. is sending a clear message that it will not tolerate Chinese companies playing a role in Russia’s war efforts.
These sanctions are expected to further strain U.S.-China relations, already frayed by a range of geopolitical issues, including trade disputes, Taiwan, and human rights concerns. Over the past year, Washington has imposed several rounds of sanctions on Chinese entities for their involvement in everything from surveillance technology to export controls violations. However, this marks the first time the U.S. has directly penalized Chinese companies for supporting Russia’s military activities.
In Beijing, the sanctions will likely be seen as an escalation of the ongoing U.S. strategy to contain China’s growing influence on the world stage. China’s leadership has consistently condemned what it sees as U.S. attempts to “encircle” the country, whether through economic sanctions or military alliances like AUKUS and the Quad. Chinese officials have also expressed frustration with Washington’s unwillingness to acknowledge China’s calls for peace in Ukraine.
For China’s drone industry, the sanctions could create ripple effects, particularly if other Western nations follow the U.S. lead and impose their own penalties on Chinese companies. Xiamen Limbach and Redlepus Vector are relatively small players in China’s broader industrial base, but they represent a growing area of technological expertise that Beijing is keen to promote.
The U.S. Treasury Department has been one of the primary tools of the Biden administration’s strategy to counter Russia’s aggression in Ukraine. Since the start of the war, Washington has imposed more than 13,000 sanctions on Russian individuals, companies, and sectors. While the sanctions have undoubtedly strained Russia’s economy, Moscow has managed to keep its war machine running by turning to allies like China, Iran, and North Korea.
In response to this latest round of sanctions, the Biden administration is likely to face further diplomatic pushback from both China and Russia. However, U.S. officials are determined to continue targeting the financial and logistical networks that sustain Russia’s war efforts. By going after Chinese companies directly involved in producing weaponry for Russia, the U.S. hopes to send a clear message to other nations that may be contemplating similar collaborations.
As the war in Ukraine drags on, it remains to be seen whether sanctions alone will be enough to cripple Russia’s military capabilities. The Biden administration has emphasized that its sanctions strategy is part of a broader effort that includes military aid to Ukraine, diplomatic engagement with allies, and efforts to maintain global pressure on Russia.
The U.S. sanctions on Chinese companies Xiamen Limbach Aircraft Engine Co. and Redlepus Vector Industry represent a bold new step in Washington’s effort to disrupt the flow of military technology to Russia. While China has denied any wrongdoing and criticized the U.S. for hypocrisy, the sanctions are likely to further strain relations between the two superpowers. As the conflict in Ukraine shows no signs of abating, the U.S. is sending a clear message that it will not tolerate foreign companies aiding Russia’s war machine.
