US adds Chinese companies to blacklist over drone parts tied to Hamas, Houthis

The US Department of Commerce said on Wednesday it would add a dozen companies based in China to a restricted trade list for their alleged roles in facilitating the purchase and use of American components and tech found in the weaponised drones said to be operated by Hamas and Houthi militants in Yemen.

Ten companies in China were designated for the Commerce Department’s “entity list” for facilitating the purchase of components found in these drones, according to the Federal Register.

Five other Chinese companies were listed because of Israel’s discovery in October 2023 of American components in numerous weaponised drones operated by Hamas. Hamas-led militants staged an attack in Israel that month.

Another Chinese company was added to the list for being part of an “illicit network” that obtains and supplies drones and other components for weapons to what the Commerce Department said are “front companies” acting for the Islamic Revolutionary Guard Corps in the Iranian armed forces.

Companies based in Turkey and the United Arab Emirates were also added to the list.

The United States uses the entity list to identify and ban activities by related companies deemed to be endangering American national security and interests. Licenses are required to export to companies on the list and are likely to be denied.