According to reports, China has begun restricting exports to the United States and Europe of key components used in drone manufacturing. This move is likely the precursor to broader export restrictions being introduced by Beijing.
Bloomberg reported on the 10th, citing unnamed sources familiar with the matter, that Chinese manufacturers of motors, batteries, and flight controllers have started to limit the quantity of shipments, or have even stopped deliveries altogether.
The insiders mentioned that Western countries expect that the Chinese government will impose broader export restrictions on drone components next year, and this move is seen as a precursor. The restrictions could be in the form of usage-based approval requirements or more lenient regulations that only require Chinese companies to inform the government of their export plans.
According to the sources, China's restrictions on drone component exports are impacting businesses in the United States and Europe, particularly as drones are an important part of Ukraine's defense capabilities. Several U.S. government departments are closely monitoring the issue, with the State Department and Commerce Department planning to contact affected domestic companies to assist in finding alternative suppliers for brushless motors, batteries, and magnets.
However, former UK military aviator James Earl stated that European drone developers have already started shifting their supply chains away from China. In the West, purchasing Chinese drone components is no longer considered an acceptable practice, with China's export restrictions being just a part of this shift.
The report noted that Western countries are pushing for the manufacturing and assembly of drones to occur outside of China to ensure supply chain security. Nonetheless, China remains a low-cost center for drone equipment production. According to a report by the Center for Strategic and International Studies, China holds nearly 80% of the commercial drone market.
Many Ukrainian drone manufacturers rely on Chinese components to produce inexpensive and efficient weapons that have played a crucial role in the war with Russia. In July of this year, China announced a ban on exporting drones for military purposes and stated it would not supply weapons to any parties involved in conflicts.