US Sanctions People, Companies Moving Weapons Parts From China to Houthis

The U.S. sanctioned two more people and four companies in China and Yemen that have helped procure weapons for the Yemen-based Houthis, allowing the group to continue attacking commercial ships in the Red Sea and civilians in Israel, the Treasury Department said this week.

One designation targets Yemen-based logistics company Al-Shahari United Corporation Ltd., which helps moved missile and drone parts from Chinese suppliers to the Houthis, Treasury said. Al-Shahari United uses its China-based branch, Guangzhou Alshahari United Corporation Limited, to move those shipments. The agency also sanctioned Hong Kong-based Hongkong Alshahari United Corporation Limited for being owned by Guangzhou Alshahari and designated Ahmed Khaled Yahya Al-Shahare, the company’s director.

Treasury also sanctioned Maher Yahya Muhammad Mutahar al-Kinai, a Yemeni businessman who coordinates with other Houthi procurement “operatives” to move dual-use equipment and parts “for likely use in Houthi weapons manufacturing.” Al-Kinai is the general manager of Yemen Telecommunication Asset Company for Information Technology, a Yemen-based company also sanctioned by Treasury.

Brian Nelson, the agency’s undersecretary for terrorism and financial intelligence, said the Houthis are looking to “exploit key jurisdictions,” like China, to buy weapons parts. “Treasury will continue to target the facilitators that enable the Houthis’ destabilizing activities,” he said.

The agency has previously sanctioned people and companies across the Middle East and Asia, including in China, for their roles in aiding the Houthis through illegal shipping and financing networks (see 2407180011, 2406170026 and 2406100018).