ARW - Arrow Electronics denies Chinese military ties as U.S. considers sanctions

The U.S. government has a draft rule listing Arrow Electronics (ARW) subsidiary Arrow Asia Pac as a "military end user," which could impose export restrictions without government permission.Arrow Electronics tells Bloomberg it's aware of the rule but calls the designation an error and denies the subsidiary is involved in military operations."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," Arrow says to Bloomberg.The company is "confident" its subsidiary won't carry the designation when the BIS publishes the final rule.Earlier this year, the U.S. military end use rules led to the supplier ban for SMIC, China's largest chipmaker.Previously: Lam Research, KLA shares drop after SMIC's U.S. ban (Sep. 28 2020)

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Arrow Electronics denies Chinese military ties as U.S. considers sanctions