Arrow Electronics denies overseas military ties as US weighs restrictions
- Arrow said the BIS description of ‘military end user’ is an error and its Asia-Pacific subsidiary is not engaged in military activities
- Washington has been cracking down on companies it accuses of providing technology to foreign military forces such as the People’s Liberation Army
Arrow Electronics Inc is in talks with the US government about possible restrictions against an Asian subsidiary, another potential flashpoint in the clash between the world’s two largest economies.
The Centennial, Colorado-based company said in a statement that it is aware of a draft rule that lists Arrow Asia Pac Ltd as a “military end user,” a designation that could subject the company to restrictions on exporting technologies without government permission.
Arrow said that description is an error and the subsidiary is not engaged in military activities.
“We have been in contact with the Bureau of Industry and Security (BIS) concerning the draft rule, and BIS has assured us that any the final list will be vetted carefully prior to publication in the Federal Register,” the company said in its statement.
“Given the foregoing, we are confident that Arrow Asia Pac Ltd will not be listed as a military end user, when BIS publishes the final rule.”
Washington has been cracking down on companies it accuses of providing technology to foreign military forces such as the People’s Liberation Army. It has applied so-called military end-use rules to companies such as China’s Semiconductor Manufacturing International Corp (SMIC), which mean that US suppliers have to apply for a license before exporting certain products to them.