US targets Chinese companies over drone components used by Hamas, Houthis
The US is adding 15 Chinese companies to its restricted trade list for facilitating the purchase of American electronic components found in drones operated by Iranian proxies.
Flags of US and China are seen in this illustration picture taken on Aug 2, 2022 (Photo: REUTERS/Florence Lo/Illustration)
WASHINGTON: The United States said on Wednesday (Oct 8) it was adding 15 Chinese companies to its restricted trade list for facilitating the purchase of American electronic components found in drones operated by Iranian proxies, including Houthi and Hamas militants.
Ten companies in China were placed on the Commerce Department's Entity List for facilitating the purchase of components found in weaponised unmanned aircraft systems operated by proxies, including Yemen's Houthis, according to a post in the Federal Register.
Five additional Chinese companies were listed after information that, around Oct 7, 2023, Israel Defense Forces recovered numerous weaponised unmanned aerial vehicles (UAVs) operated by Iranian proxies, including Hamas, the post said, and the debris showed multiple US-origin electronic components.
Hamas-led militants staged an attack in Israel that day that killed 1,200 people, according to Israeli tallies, and triggered the war in Gaza.
In all, the Commerce Department's Bureau of Industry and Security is adding 29 entries to the list, including companies based in Turkey and the United Arab Emirates.
Arrow China Electronics Trading in Shanghai and other Chinese cities, and Arrow Electronics (Hong Kong) are among the companies being placed on the list over US components for weaponised drones operated by Iranian proxies like the Houthis.
Both companies are subsidiaries of Colorado-based Arrow Electronics, a components distributor which says it had global 2024 sales of $28 billion.
The companies have been and are continuing to operate in compliance with export regulations and the law, according to a statement from the US-headquartered company.
"We are in discussion with BIS concerning these listings and will provide further details as soon as they become available," Arrow spokesperson John Hourigan said in the statement. "In the meantime, we will work to minimise supply chain disruptions to our partners."
The US also added another Chinese company to the list for being part of an illicit network that obtains and supplies UAV and other components to front companies of the Islamic Revolutionary Guard Corps’ Quds Force (IRGC-QF).
Companies are placed on the Commerce Department’s Entity List for activities deemed contrary to US national security and foreign policy interests. Licenses are required to export to companies on the list, and are likely to be denied.
