US targets Chinese companies over drone components used by Hamas, Houthis

By Karen Freifeld

WASHINGTON, Oct 8 (Reuters) - The United States said on Wednesday 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 designated for the Commerce Department's so-called Entity List, for facilitating the purchase of components found in weaponized 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 that around October 7, 2023, Israel Defense Forces recovered numerous weaponized unmanned aircraft vehicles (UAVs) operated by Iranian proxies including Hamas, the post said.

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 is adding 29 entities to the list, including companies based in Turkey and United Arab Emirates.

Among those, the U.S. 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 added to the Commerce Department’s Entity List for activities deemed contrary to U.S. national security and foreign policy interests. Licenses are required to export to companies on the list, and are likely to be denied.