China has imposed unprecedented restrictions on the export of critical components for the production of unmanned aerial vehicles (UAVs) to the United States and Europe. This could have serious consequences for Ukraine, since China controls 80% of the world market for drone components, and much of the country's defense technology depends on the supply of these components.
China has begun cutting back on supplies of key components for drones (including civilian ones) to both American and European companies.
The moves are believed to be a prelude to broader export restrictions on drone parts, according to Bloomberg. Beijing will implement them in the new year, sources say.
Those rules could take the form of licensing permits based on the intended use of components or more lenient requirements for Chinese companies to notify the government of their supply plans, one of the sources said.
In July 2024, China announced a ban on the export of drones for military use, and Beijing currently maintains that it does not supply weapons to either side of the conflict. But European officials say that Chinese companies are developing attack drones for the aggressive actions of the Russian Federation, in particular, Russia's war in Ukraine.
Bloomberg reports that the trade conflict between the West and China escalated this month when Washington restricted sales of high-bandwidth memory chips and additional semiconductor equipment to China.
In response, Beijing banned the sale of dual-use goods to the U.S. military, as well as several high-tech and military-use materials to U.S. companies.
The measures, which come weeks before Donald Trump returns to the presidency with a tough agenda on China, sent prices soaring.
China's embargo on drone components will affect the production of UAVs in Ukraine.
Western countries are scrambling to build and assemble drones outside of China to secure their supply chains. But China remains the center of production of cheap equipment for these devices. According to a report by the Center for Strategic and International Studies, China controls nearly 80% of the commercial drone market.
Many UAV manufacturers in Ukraine rely on Chinese components for the manufacture of cheap and effective weapons, which have become decisive in countering Russian aggression.
