U.S. Reverses Trade Restrictions on Arrow Electronics’ Chinese Affiliates
The U.S. government has reversed trade restrictions imposed on Arrow Electronics’ China-based affiliates, allowing the electronic components distributor to resume normal business operations with these entities.
Key Developments
- Arrow Electronics Trading Co and six Hong Kong aliases removed from Entity List
- Restrictions lifted following October 8 listing over drone component concerns
- Company authorized to resume shipping under pre-October 8 conditions
Background of the Restrictions
On October 8, the Commerce Department added Arrow’s Chinese affiliates to the Entity List after finding U.S. components sold through these entities in weaponized drones used by Iran-backed groups like the Houthis. The components were traced from drone debris recovered in the Middle East since 2017.
Official Reversal
Arrow Electronics announced on Saturday that the Commerce Department would soon publish the reversal in the Federal Register and had sent a letter removing restrictions immediately.
“We have received official communication from the U.S. Commerce Department,” Arrow spokesman John Hourigan said. “Arrow is authorized to resume shipping to and from these entities under the same conditions that applied prior to October 8.”
Commerce Department Statement
A Bureau of Industry and Security spokesperson stated: “BIS is committed to ensuring that export restrictions are appropriately targeted to protect national security.”
Clarification on Affiliates
Hourigan clarified that Arrow Electronics Co. Ltd, initially described as a subsidiary when added to the Entity List, was not actually affiliated with Arrow Electronics. However, the six Hong Kong aliases are legitimate affiliates and will be removed from the restrictions.
The Colorado-based company, which reported $28 billion in global 2024 sales, maintains it operates in full compliance with all laws and regulations.
