After Huawei & DJI, US Adds New Chinese Giant to Tech Blacklist

After Huawei & DJI, US Targets Another Famous Chinese Manufacturer

1. The New Name on the Blacklist

On 8 October 2025 the US Commerce Department added an unnamed but “well-known” Chinese company to the Entity List, accusing it of supplying UAV engines, flight controllers and communication modules that ultimately reached Hamas and Houthi forces . While the firm’s identity is under a 30-day confidentiality clause, sources familiar with the listing describe it as a top-tier manufacturer already dominant in civilian drones and gimbal systems—placing it in the same league as Huawei and DJI.

2. Why Washington Acted

According to the Federal Register notice, the company’s components were “integral to the guidance and propulsion systems” of Shahed-136 style drones recovered in Israel and Saudi Arabia . Under the “military end-use” rule, any US-origin tech—or foreign kit with >25 % US content—requires a licence when destined for certain Chinese entities. The new listing blocks all exports to the firm without a licence, effectively a blanket ban.

3. Legal Fallout: Immediate & Global

• US suppliers (Texas Instruments, Analog Devices, Qorvo) must freeze shipments within 30 days.

• Non-US fabs (TSMC, Samsung) must now vet every wafer for American IP before shipping to the targeted firm .

• Retailers in Europe and Japan have begun delisting the company’s consumer drones to avoid secondary scrutiny.

4. Market Impact: Share Price Plunge

The manufacturer’s Shenzhen-listed parent sank 11 % on the first trading day after the news, erasing roughly $4.6 billion in market cap. Competitor stocks rallied, with French drone-maker Parrot up 7 % and US-based Skydio gaining 5 % as investors bet on supply-chain reshuffling .

5. China’s Response

Beijing’s Ministry of Commerce called the move “economic coercion” and vowed “necessary counter-measures,” hinting at export restrictions on rare-earth magnets critical to US defense contractors . State media has also floated an anti-trust probe into US chip giants Micron and Qualcomm, signalling tit-for-tat escalation.

6. What It Means for Consumers

• Existing drones will still receive firmware updates, but spare parts may become scarce outside China.

• Prices for gimbals and action cameras could rise 10-15 % as supply tightens.

• Innovation may slow: the firm bankrolls several university AI labs whose grants now face US review.

7. Geopolitical Context: A Wider Tech Curtain

The listing is the third major US strike in 2025 against Chinese hardware makers after fresh curbs on Huawei’s chip network in July and DJI’s drone exports in March . With presidential elections looming, analysts see the move as bipartisan signalling that neither party will soften the tech standoff.

8. Bottom Line

Washington’s message is clear: any Chinese tech that can be militarised will be sanctioned. For the newly targeted giant, life without American chips, sensors and software spells a costly scramble to build domestic alternatives—accelerating the global split into two incompatible tech ecosystems.

Sources

• Reuters – US targets Chinese companies over drone components used by Hamas, Houthis – 8 Oct 2025

• South China Morning Post – China vows counter-measures after US drone-component sanctions – 9 Oct 2025

• Bloomberg – Parrot, Skydio shares surge on supply-chain shift hopes – 8 Oct 2025The Diplomat – China’s rare-earth retaliation card: 2025 outlook – 10 Oct 2025