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, as China controls 80% of the global market for drone components and a significant part of the country's defense technology depends on the supply of these components.
China has begun to reduce supplies of key components for drones (including civilian ones) to both American and European companies.
According to Bloomberg, there is speculation that the corresponding steps are a prelude to broader export restrictions on drone parts, which Beijing will put into effect in the new year, sources told the publication.
According to one of the people, these 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.
In July 2024, China announced a ban on the export of drones for military use - Beijing currently claims that it does not supply weapons to any of the parties to the conflict. But European officials say that Chinese companies are developing strike drones for aggressive actions by the Russian Federation, including Russia's war in Ukraine.
Bloomberg recalls that the trade conflict between the West and the PRC escalated this month when Washington restricted the sale of high-bandwidth memory chips and additional semiconductor equipment to China.
In response, Beijing banned the sale of dual-use goods to the US military, as well as several high-tech and military materials to American companies.
The measures, taken just weeks before Donald Trump returns to the presidency with a tough agenda on China, have led to a sharp rise in prices.
China's embargo on drone components will affect UAV production in Ukraine.
Western countries are trying to build and assemble drones outside of China to secure their supply chains. But China remains the center of production of low-cost equipment for these devices. According to a report by the Center for Strategic and International Studies, China controls almost 80% of the commercial drone market.
Many UAV manufacturers in Ukraine rely on Chinese components to produce cheap and effective weapons that have become crucial in countering Russian aggression.
