US report: China arms Houthis in Yemen in exchange for freedom of passage in the Red Sea

US intelligence sources have revealed that the Iranian-backed Houthi rebels in Yemen are using Chinese-made weapons in their attacks on shipping in the Red Sea in exchange for refraining from launching attacks on Chinese ships.

After Houthi leaders visited China in 2023 and 2024 to establish a supply chain, the group was able to obtain “advanced guidance components and equipment” for its missiles, according to a report by the Foundation for Defense of Democracies, citing the Israeli channel i24 News.

The report, published by the Foundation for Defense of Democracies (FDD) - translated by "Yemeni Youth Net" - claimed that the Houthis are planning to use Chinese weapons components to produce hundreds of cruise missiles capable of striking the Persian Gulf states.

China-linked vessels continue to sail the Red Sea, with maritime data confirming that “China-linked” vessels continue to navigate Red Sea shipping lanes without being targeted, although a Houthi targeting error led to an attack on a China-linked oil tanker in March 2024.

The Houthis have previously said they would avoid targeting ships linked to China, which buys 90 percent of Iran's oil exports, helping to counter sanctions on the country's energy sector.

The United States has imposed sanctions on two China-based companies for assisting the Houthis: On October 2, 2024, the United States imposed sanctions on two companies for supplying the Houthis with “dual-use components” that would enhance “domestic missile and drone production efforts.”

Shenzhen Rion Technology Co., Ltd. and Shenzhen Jinghon Electronics Limited were sanctioned for materially supporting the Houthis, including shipping “hundreds” of advanced missile guidance system components.

“We now have credible reports that China’s communist rulers are supplying weapons to the Houthis in Yemen, with support from the Islamic Republic of Iran,” said Clifford May, founder and president of the American think tank FDD.

“It should now be clear that the West is effectively under fire from an axis of aggressors: Beijing, Moscow, Tehran and its proxies, and Pyongyang. They are determined to establish a new international order based on their own power and rules. The United States and its European allies have not responded effectively to this reality. Perhaps the next administration will do a better job,” he added.

“With international scrutiny on the Houthis intensifying over more than a year of attacks on Israel and commercial shipping, the group is likely seeking to diversify its supply chain to support its expanding missile capabilities,” said Joe Trozman, a senior research analyst and editor of the Foundation for Defense of Democracies’ Long War Journal.

“The Houthis have learned crucial lessons from more than a decade of valuable battlefield experience. They have learned that putting pressure on key states in the region, especially the Persian Gulf states with their vast oil and gas reserves, could create significant global economic instability,” he added.

“China’s assistance to the Houthis is yet another sign that Beijing is actively contributing to global chaos and instability,” said analyst Jack Burnham. “From Chinese companies supplying Russia with drones for its war in Ukraine to now supporting a proxy group carrying out strikes against Israel and the United States, China is cementing its position as an arsenal for authoritarian regimes.”