China may restrict drone component exports, possibly affecting Ukraine – Bloomberg

Western officials have claimed to have information about China's intentions to expand export restrictions on components used in the production of various drones starting from 2025, which may make them less accessible, including for Ukraine.

Source: European Pravda with reference to Bloomberg, based on communication with several anonymous sources

Details: China has recently started reducing sales of key components used in UAVs to the United States and Europe. Sources stated that these restrictions are expected to tighten from 2025.

The new regulations may take the form of a licensing system based on the intended use of the components and Chinese companies will be required to inform Beijing about their supply plans.

The reason behind these plans is the escalation of the trade conflict with the United States in recent times, when Washington imposed restrictions on the sale of high-bandwidth chips and semiconductors to China and Beijing responded by banning the sale of certain goods to the US that could be used for military purposes. This immediately led to an increase in prices for some components.

Bloomberg’s sources say these restrictions are already being felt by companies in the US and the EU. Government agencies are monitoring the situation and the State Department and the Department of Commerce plan to cooperate with companies to help them find alternative supply sources.

UAV manufacturers in Europe have been changing suppliers for some time to reduce dependence on China, but overall, China remains the largest cheap components producer and, according to some estimates, controls up to 80% of the market.

Background: 

• US President-elect Donald Trump threatened that upon his return to the White House, he would immediately impose tariffs on all goods coming to the United States from Canada, Mexico and China.
• In response, Beijing stated that "no one will win a trade war".

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