A report citing American intelligence sources revealed that Iran-backed Houthi rebels in Yemen are using Chinese-made weapons to target shipping in the Red Sea, while agreeing to spare Chinese vessels from their attacks.

According to Israel’s i24 News, the Houthis have developed a sophisticated supply chain in China, enabling them to acquire advanced components for their missile systems. These components include guidance systems essential for ballistic and cruise missiles. 

Intelligence assessments reportedly indicate that the Houthis plan to produce hundreds of cruise missiles capable of striking Persian Gulf states.

Washington has previously identified and sanctioned companies supplying dual-use technologies that enhance the Houthis’ missile production capabilities. These companies include Shenzhen Rion Technology Co., Ltd. and Shenzhen Jinghon Electronics Limited.

The U.S. has reportedly informed China about these developments since September 2024, providing detailed intelligence on Chinese companies implicated in the arms supply network. Despite these communications, Beijing has not taken significant action to disrupt the network.

Diplomatic sources also indicated that Houthi officials visited China multiple times in 2023 and 2024, potentially meeting with senior Chinese officials to solidify these agreements.

While the Houthis had agreed to refrain from targeting Chinese-flagged vessels as part of the agreement, a targeting error in March 2024 reportedly resulted in the attack on a Chinese-linked oil tanker. 

Maritime data suggests that Chinese-affiliated vessels continue to navigate the Red Sea with minimal interference, despite frequent Houthi assaults on other commercial shipping in the region.