SOURCE / ECONOMY
US listing of Chinese firms over drone parts trade will disrupt global supply chains, hurt itself: expert
Published: Oct 09, 2025 02:29 PM
Visitors look at a drone at an exhibition in Shanghai on March 18, 2025. Photo:VCG

Visitors look at a drone at an exhibition in Shanghai on March 18, 2025. Photo:VCG

The US' latest move to add several Chinese companies to its entity list over alleged drone parts supplies to Houthi and Hamas is a continuation of US abuse of long-arm jurisdiction and will serve to further disrupt global industrial and supply chains, a Chinese analyst said on Thursday.

The US announced the addition of 15 Chinese companies to its restricted trade list, claiming they facilitated the purchase of American electronic components found in drones operated by the Houthi and Hamas, according to the US Federal Register.

Effective Wednesday, these companies added to the US Commerce Department's Entity List will face restrictions in their transactions with US firms, according to the federal document.

Some of the listed entities, such as Arrow China Electronics Trading Co, are subsidiaries of companies traded on the US stock market.

Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, said that the new US measure is another example of Washington's abuse of export control measures and will likely serve to further affect global industrial and supply chains.

China is the world's leading producer of drones, with a complete ecosystem formed by countless manufacturers, Xiang said, "by restricting dealings between Chinese companies and US companies, the new US rule could ultimately harm the US itself."

The move is also another example of US long-arm jurisdiction that disregards international norms, and a typical display of double standards, Xiang said, noting that the US is placing its export restrictions arbitrarily and based solely on its own interests.

According to a report by China Air Transport Association in October 2024, China has been the world's largest exporter of civilian drones for several years, Xinhua News Agency reported.

China accounts for about 70 percent of global patent applications in the drone sector, establishing itself as the world's leading source of drone technology.

It is likely that US civilian supply of drone and related components could be affected by the new restrictions, Xiang said.

At a routine press conference in January, when asked whether China is concerned about a potential US move to restrict or ban Chinese drones in the US, Chinese Foreign Ministry spokesperson Mao Ning said that China firmly opposes the US overstretching the concept of national security, which disrupts and restricts normal economic and trade exchanges, and undermines the security and stability of the global industrial and supply chains.

We will take all measures necessary to firmly safeguard our lawful rights and interests, Mao said.

Global Times