Arrow denies ties to Chinese army as US considers sanctions

One of Arrow's subsidiaries has appeared in a draft document of firms facing scrutiny by the US government

Arrow has been forced to deny connections to the Chinese army after one of its subsidiaries was included in a draft sanctions document by the US government.

One of the distie's Asian units, Arrow Asia Pac Ltd, has reportedly found itself listed alongside other companies that could face restrictions.

These sanctions are separate to those imposed on Huawei, which is on the US entity restrictions but mean that US businesses have to apply for a licence before they can export certain products to firms listed.

Arrow's subsidiary appears in the document as a "military end user", Bloomberg reported.

The Distie has denied any links to the Chinese military and called its inclusion on the list, which is yet to be formalised, an error.

"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," it said in a 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."