China imposes export limitations on drone components to the West – Bloomberg

The media outlet reports that the alleged restrictions may negatively impact the manufacturing of military UAVs in Ukraine. Read Full Article at RT.com.

China imposes export limitations on drone components to the West – Bloomberg
China has imposed restrictions on the export of essential components used in drone production to Europe and the US, according to Bloomberg, which cited anonymous sources. These reported measures could impact Ukraine’s military UAV manufacturers, who depend significantly on Chinese parts.

Bloomberg's article published on Monday indicated that the restrictions affect companies in both the US and Europe. Chinese manufacturers have allegedly reduced their shipping quantities or halted deliveries of critical components, including drone motors, batteries, and flight controllers.

Lorenz Meier, the CEO of Auterion, a firm that provides UAV software, is quoted as predicting that “it will escalate over time to new restrictions.” The company is said to collaborate with the Ukrainian military among other clients, and Bloomberg pointed out that “many producers of UAVs in Ukraine rely on Chinese parts.”

These reported export limitations follow Beijing's recent ban on the sale of dual-use items and materials to the US military and American firms, a move linked to Washington's restrictions on high-bandwidth memory chips and other semiconductor equipment bound for China.

The article implies that China is planning to implement broader export restrictions next year, possibly requiring license approvals or notifications to the government by Chinese companies regarding their shipping plans.

In light of these developments, drone manufacturers in the US and EU are seeking alternative suppliers, with Taiwan, South Korea, and Japan mentioned as potential options by Bloomberg.

However, according to the Center for Strategic and International Studies, a Washington-based think-tank, China currently holds nearly 80% of the global commercial drone market.

Since the conflict in Ukraine intensified in February 2022, there have been numerous allegations from Western officials and the media regarding China's provision of drone components to both Moscow and Kiev for their respective UAV fleets. China has repeatedly denied these claims.

In July, China enacted a ban on the export of civilian drones that could be utilized for military purposes. In November, the Ministry of Commerce unveiled a list of dual-use items subject to export control, which took effect on December 1.

In a social media post in September, Ukrainian President Vladimir Zelensky seemed to criticize the Chinese export restrictions, albeit without naming China directly.

Ramin Sohrabi for TROIB News