US targets Chinese companies over drone components used by Hamas, Houthis
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The US added 15 Chinese companies to its restricted trade list.
PHOTO: REUTERS
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WASHINGTON – The US said on Oct 8 that 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.
A total of 10 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 Houthi militants, according to a post in the Federal Register.
Five additional Chinese companies were listed after information showed that around Oct 7, 2023
Hamas-led militants staged an attack in Israel that day that killed about 1,200 people, according to Israeli tallies, and triggered the war in Gaza.
In all, the Commerce Department’s Bureau of Industry and Security (BIS) 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 such as the Houthis.
Both companies are subsidiaries of Centennial, Colorado-based Arrow Electronics, a components distributor, which says it had global sales of US$28 billion (S$36.2 billion) in 2024.
The companies said they 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 discussions with BIS concerning these listings and will provide further details as soon as they become available,” Arrow spokesman 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 Iran’s Islamic Revolutionary Guard Corps’ Quds Force.
Companies are placed on the Commerce Department’s Entity List for activities deemed contrary to US national security and foreign policy interests. Licences are required to export to companies on the list and are likely to be denied. REUTERS
