China to introduce export controls on drones and parts used for military purposes: experts on the consequences

From September 1, the Chinese government will begin implementing new export restrictions on the export of components for drones and electronic warfare (EW) that can be used for military purposes. According to the South China Morning Post, on July 31, the Chinese government published a directive on export restrictions.

According to the document, Chinese government authorities will strictly control where manufacturers will supply the following products:

• high-precision inertial measuring devices;
• synthetic aperture radars;
• engines with an output power of more than 16 kilowatts;
• means for wireless communication with a range of more than 50 km;
• consoles that can control more than 10 drones simultaneously;
• jamming generators for civilian drones with an effective range of more than 5 km.

The directive came a day after the US Treasury Department imposed sanctions on several individuals and entities based in mainland China and Hong Kong for purchasing components (such as gyroscopes and accelerometers) for Iran’s ballistic missile and drone programs. The Chinese government opposed the use of civilian drones for military purposes, but at the same time condemned the American measures.

Exactly one year ago, on July 31, 2023, China issued a “temporary notice” banning the export of certain drones that could be used for military purposes. The authorities were given the right to require special state permits for the export of UAVs with a maximum flight time beyond visibility of more than 30 minutes and a maximum take-off weight of more than 7 kg. Powerful radio stations, modern cameras, devices for dropping objects, laser locators or any other “unverified payload” were also restricted. Now China has actually expanded the list of prohibited components for sale, making it difficult to supply them directly to Ukraine.

China’s decision has already caused problems for Ukrainian manufacturers who rely on Chinese technology to create drones and EW devices. Experts say what this means for Ukraine and what the consequences may be.

Serhiy Klymenko, a military analyst, believes:

“Chinese restrictions on the export of critical components for drones and electronic warfare equipment create serious challenges for the Ukrainian defense industry. Ukraine found itself in a situation where it is necessary to urgently look for alternative supplies or invest in the development of its own production. This requires significant resources and time, which we do not have so much during wartime.

Considering the pace of development of Chinese industry, their restrictions on exports are a serious signal for Ukraine and all its partners. It must be taken into account that even minor delays in supply can significantly affect the effectiveness of our army at the front.”

A change in the terms of supply of components for military drones may lead to the need to find new partners or even change the strategy of using existing resources. In the long term, this can stimulate the development of Ukrainian technologies, but now it creates additional pressure on the defense industry.”

The founder of the company “Antidrone Ukraine” is Serhii Gerasimyuk told, that restrictions on the supply of jamming generators will create significant difficulties for manufacturers of radio electronic warfare (EW). According to him, export control will significantly complicate logistics processes. Although it is possible to circumvent these restrictions, this will inevitably lead to an increase in the delivery time of the goods and an increase in their total cost.

“EW is always what was needed yesterday, so these problems will be felt not only by manufacturers, but also by end users.” Gerasimyuk emphasized.

He also noted that now it makes no sense to invest in the Ukrainian production of radio jamming generators, as China remains the most convenient and closest supplier of the necessary components. In the end, the supply of EW equipment for the military will take the same time, only instead of ready-made modules, you will have to wait for parts for them.

Anna Chudnivets, director of the Ukrainian company “SokilSky”, which specializes in the production of FPV drones for the military, is already expressing concern over new export restrictions from China. She reported, that many Chinese companies with which they cooperate begin to stop supplying the necessary parts. Previously, these companies did not supply components directly to Ukraine, using intermediaries in other countries, but now the problem has become even more urgent, since Ukraine does not have its own manufacturers of many important components. Although there are manufacturers of propellers, frames and engines, but even for the manufacture of these engines, the necessary components are ordered from China.

Anna Chudnivets expresses the hope that over time Ukrainian manufacturers will find ways to continue receiving the necessary components from China, but much depends on the speed of solving this issue. She noted that the Chinese government has not yet made final decisions at the legislative level regarding exports, but many local companies are no longer willing to cooperate with Ukrainians when it comes to the supply of parts for drones.

She also shared that they currently have an order for which they are waiting for components from China, but are already facing problems due to the fact that the manufacturing company in China has faced numerous inspections and tax issues and has therefore refused to further cooperation.

In her opinion, Ukraine needs to establish its own production as soon as possible. However, it is already clear that even if the production starts, the parts for the UAV will not be as cheap as those supplied from China, since the Chinese industry has been developing for a long time, and all the processes there are well developed. She emphasized that it takes a lot of time to develop this system, and the products are needed now.

Simultaneously Yurii Abdula, the owner of the drone repair workshop convinced that the situation will not fundamentally change. He believes that China does not prohibit the supply of components for drones to European countries, from where they have been delivered to Ukraine for a long time, so there is no reason to panic.

“There are many ways to get around this system, and that’s the way it will be. Therefore, no one is afraid of restrictions. China cannot help but sell these components, because it makes money from this, and it needs to sell its products somewhere. The capacities that have been deployed in the last two years to produce such systems are simply impressive. If the Chinese started mass production, these products will still be sold. The statement that they will not sell goods for the war in Ukraine is just a formal disclaimer to distance themselves from helping one of the parties to the conflict.” said Abdula.