Iran Orders Material from China to Produce 800 Ballistic Missiles
Iran has ordered thousands of tons of ballistic-missile ingredients from China, people familiar with the transaction told The Wall Street Journal, seeking to rebuild its military prowess as it discusses the future of its nuclear program with the US.
The report, which cited people familiar with the transaction, said Tehran had ordered enough ammonium perchlorate to potentially manufacture up to 800 missiles. It said the material is used to produce solid-fuel missiles.
'Shipments of ammonium perchlorate are expected to reach Iran in coming months and could fuel hundreds of ballistic missiles,' the people said. Some of the material would likely be sent to militias in the region aligned with Iran, including Houthis in Yemen.
According to the Journal, Iran's drive to expand its missile stockpile and strengthen its regional proxies comes as it continues to enrich uranium to levels just below weapons grade and has refused to place limits on its missile development as part of nuclear negotiations.
President Donald Trump said he discussed the issue during a phone call with Russian President Vladimir Putin
'Time is running out on Iran's decision pertaining to nuclear weapons,' Trump wrote Wednesday in a social-media post.
Part of rebuilding Iran's 'Axis of Resistance'
The shipment of ammonium perchlorate is part of Iran's broader efforts to rebuild its so-called "Axis of Resistance" network.
The ammonium perchlorate was ordered by an Iranian entity called Pishgaman Tejarat Rafi Novin Co. from the Hong Kong-based Lion Commodities Holdings Ltd, the Journal reported.
China's Foreign Ministry told the Journal that Beijing was unaware of a contract for such a shipment.
'The Chinese side has always exercised strict control over dual-use items in accordance with China's export control laws and regulations and its international obligations,' said the spokesperson.
Iran has been looking for ways to rebuild its network of regional proxies, the so-called Axis of Resistance, after Israel struck Hezbollah in Lebanon, Hamas in Gaza, and the Assad regime in Syria.
While US and Israeli strikes have damaged the Houthis' capabilities in Yemen, they continue to periodically launch missiles at Israel.
The Journal said that beyond supporting regional militias, Iran has also reportedly transferred ballistic missiles to Shiite militia groups in Iraq, which have previously targeted both US and Israeli forces in the region.
Earlier this year, Iranian ships docked in China to load over 1,000 tons of sodium perchlorate, a precursor for ammonium perchlorate.
The material was delivered to Iranian ports in mid-February and late March, according to shipping trackers. This quantity of sodium perchlorate is said to be enough to fuel around 260 short-range missiles.
The new order for ammonium perchlorate, which was placed months before President Trump's proposed nuclear talks with Iran's Supreme Leader, Ali Khamenei, in early March, could supply Iran with enough material to produce approximately 800 missiles, one official estimated.
In response to Iran's missile activities, the US Treasury Department sanctioned six individuals and six entities from both Iran and China on April 29 for their involvement in procuring ballistic missile propellant ingredients.
Two weeks later, the Treasury expanded these sanctions to include additional Chinese and Hong Kong entities. It added sodium perchlorate to its list of materials linked to Iran's military, nuclear, and missile activities.
A State Department official said, 'Chinese entities and individuals have provided support to Iran's ballistic missile program, as well as to the Houthis' missile and UAV production efforts, which is why we continue to identify and sanction them.'
Possible Threats
Fabian Hinz, a military expert at the International Institute for Strategic Studies, said 'Iran likely needs material from abroad to avoid bottlenecks in its domestic production capabilities.'
However, storing such materials poses significant risks.
In April, a deadly explosion at Shahid Rajaee port, Iran's key container hub, killed dozens. State media attributed the blast to the mishandling of explosive materials by a unit of the Iranian Revolutionary Guard Corps' Quds Force.
An official confirmed that some of the previously imported sodium perchlorate was destroyed in the incident.
'These substances are a major fire and explosive hazard,' Hinz warned. 'Iran's defense industrial complex does not have a strong track record in ensuring safety standards.'
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Watson notes that the Kingdom has emerged as a major e-commerce hub in the Middle East and North Africa, driven by its young, tech-savvy population and expanding internet coverage. He believes the growth of the e-commerce sector will not negatively impact the operations of shopping malls nationwide. • Strengthening the Kingdom's retail sector, including the development of shopping destinations, is one of the crucial goals outlined in the Vision 2030 program. • Riyadh is leading the Kingdom's retail transformation, with mall rents up 4 percent in a year and 2.2 million sq. meters of new retail space planned by 2030. 'As is the case with every region, the overwhelming majority of retail sales is derived from brick-and-mortar transactions. Malls will need to adapt by integrating technology, enhancing the customer experience and offering unique in-person experiences that cannot be replicated online,' said Watson. According to Spary, many consumers still prefer the tactile experience of shopping in person, and malls can integrate e-commerce by offering click-and-collect services. 'Malls can serve as experiential spaces where brands showcase their products, attracting customers who enjoy the physical shopping experience. Taking into account both cultural shopping preferences as well as the impact of the climate on consumer behavior, increasing e-commerce penetration will add to the overall omnichannel approach that retailers are adopting across the region,' said Spary. Sundeep Khanna, partner at ADL, said that the growth of the e-commerce sector is not cannibalising shopping malls, but is actually complementing them. 'Today's consumer expects seamless integration between all channels, and this benefits physical as well as digital retail in terms of driving footfall, experience, and convenience,' said Khanna. Attracting international brands Spary told Arab News that the transformation and upgrade of retail offerings in the market of Saudi Arabia will pave the way for new international brands to enter and grow within the Kingdom, contributing to the country's wider economic goals. According to the CBRE official, the entry of new brands will not only enhance consumer choices but also stimulate a competitive environment that encourages brand expansion and attracts investment. 'CBRE is currently seeing record levels of demand from international brands looking to expand into the region. This demand is likely to continue given the robust and ever-maturing nature of this market,' said Spary. Cointet noted that Saudi Arabia has become an attractive destination for global fashion, luxury, and food and beverage retailers, drawn by the population's strong spending power and the rise of premium mall spaces such as Riyadh Park and Mall of Arabia. 'Mall expansion goes hand-in-hand with pro-investment reforms — for example, Saudi Arabia now allows 100 percent foreign ownership in the retail sector, encouraging international companies and developers to invest directly,' added Cointet. The Arthur D. Little official further stated that the expansion of shopping malls in the Kingdom will also provide local brands with unprecedented opportunities to establish a national and international footprint. 'This is critical for developing the Saudi economy and I anticipate we will see more Saudi-owned brands enter the world stage in the coming years,' added Cointet. Potential challenges The experts also highlighted some of the challenges in Saudi Arabia's retail landscape, particularly surrounding shopping malls, including oversupply. 'Whilst there's certainly a risk of oversupply with many large projects due to be delivered over the course of the next two to three years, the need for continuous innovation and adaptation to changing consumer trends will be crucial for the sustainability of shopping malls in the Kingdom,' said Spary. The CBRE official further said that new attractions, entertainment options, and cultural elements will play a pivotal role in reshaping the retail landscape in the market. Spary added that the integration of these features will create a more engaging and immersive experience for consumers, ultimately redefining how shopping is perceived and enjoyed in the Kingdom. Cointet expressed a slightly different view, stating that the demand for malls in Saudi Arabia is expected to rise in the coming years due to population growth. He explained that this challenge could be addressed by developing large-format mega malls that serve as destinations in themselves, alongside smaller community malls designed to offer convenience at the local level. In April, a separate analysis by S&P Global said that oversupply, changing retail preferences, and pressure on rental yields amid elevated capital expenditure by landlords could exert pressure on the Kingdom's retail sector. According to the US-based agency, the volume of retail projects in the pipeline raises the risk of potential oversupply, particularly in secondary locations where demand may not be sufficient to absorb new retail spaces. Discussing the risk of oversupply, Cointet said: 'Saudi Arabia's aggressive development pipeline of new retail space underway — raises the risk of too much supply coming to market, which could pressure occupancies and rents in some areas, or even threaten the launch of some of the programs.' He added: 'Landlords and developers may need to differentiate their properties with unique experiences, dining, and entertainment offerings — and even offer lease incentives — to avoid saturation and keep shoppers engaged in an evolving retail landscape.'
