China significantly restricts the sale of drones. What does this mean
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Economics
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China significantly restricts the sale of drones. What does this mean

UAV Mavic
Source:  Bloomberg

The authorities of the People's Republic of China have decided to significantly limit the sale of drones and their components, which may significantly affect the course of the criminal war unleashed by Russia against Ukraine, where drones play a key role.

Points of attention

  • China's restrictions on drone sales could significantly affect military operations in Ukraine, where drones play a key role.
  • The limitations on supplies of drone components by Chinese companies amidst trade conflicts are impacting the global drone market.
  • Efforts are underway to reduce dependence on Chinese technologies by seeking alternative sources of drone components in South Korea, Japan, and Taiwan.
  • The restrictions on drone components from China pose serious challenges for Ukraine's military strategies, requiring quick adaptation to new conditions.
  • The search for alternative suppliers of drone components by countries like Ukraine, the US, and EU is essential to mitigate the impact of China's restrictions.

What will be the consequences of China's restriction on the sale of drones to other countries

According to the journalists of the publication, Chinese UAV production companies, against the background of a new trade conflict with the United States, have already begun to limit the supply of key components for UAVs, in particular, engines, batteries and flight controllers to the American and European markets.

Interlocutors of the publication note that this will be followed by even stricter export restrictions with requirements for obtaining licenses or informing the government about planned deliveries.

Currently, the Ukrainian military in the criminal war unleashed by Russia mainly relies on access to cheap Chinese components for UAVs.

Thus, the production of drones in Ukraine faces serious problems.

In response to Washington's restrictions on chip exports to China, Beijing banned the sale of dual-use goods to American companies.

Many Western countries, including the US and European countries, are already looking for alternatives to Chinese supplies, but dependence on Chinese manufacturers remains significant

As the director of the Auterion company, Lorenz Mayer, which supplies software for Ukrainian drones, notes, the restrictions create serious problems for current projects in Ukraine.

"I hear a story like this every two or three days," Mayer added.

Drone manufacturing companies in Ukraine actively use Chinese components to create inexpensive and efficient drones.

China restricts supplies of components for UAVs to the EU and the USA
The Armed Forces of Ukraine launches a drone

UAVs remain the main tool of the Ukrainian military at the front for conducting reconnaissance and carrying out combat missions to destroy military facilities of the criminal army of the Russian Federation.

In July 2023, China already announced a ban on the export of drones for military use, saying it does not support either side of the conflict.

How and where to look for alternative suppliers of components for UAVs

The State Department and the US Department of Commerce are working to find alternative suppliers, including motors, batteries and magnets.

The Pentagon has also blacklisted several Chinese companies that it believes are linked to the Chinese military.

However, these restrictions do not yet eliminate the general dependence on Chinese technology.

Tom West, acting head of the US State Department's Sanctions Coordination Office, explains that the supply of drone components from China to Russia helps the aggressor country to attack civilian objects on the territory of Ukraine.

The PRC is ahead of any country in the world in this export, contributing to Russia's groundless destruction of Ukraine's civil infrastructure, West emphasizes.

Currently, Ukraine and its partners are looking for alternative sources of supply of components for BPL, in particular, in South Korea, Japan and Taiwan.

China remains a leading producer of low-cost components, but global efforts to reduce dependence on the PRC continue.

At the same time, Ukraine will face the need to quickly adapt to new conditions, because drone technologies remain an important element of its military strategy.

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