China on July 31 announced restrictions on the export of drones and some components used in their manufacture, a move that could affect overseas production of the aircraft, including those used by armed forces in the conflict in Ukraine.
Starting September 1, Chinese companies will not be allowed to export certain types of drones, their engines and infrared imaging equipment without a license, government agencies including China's Central Military Commission said.
The agency also added that China was not targeting any specific country, and the restrictions would be in effect for no more than two years.
“This decision could be seen as a compromise by Beijing to avoid losing international markets and potential sanctions from the West, especially after the US announced the discovery of Chinese-made drones being exported to Russia,” said Macau-based analyst Antony Wong Tong.
According to Mr. Tong, Beijing needs to clearly demonstrate its neutral stance to protect national interests, especially in the context of increasing pressure from the West.
China is helping Russia evade sanctions and may be providing Moscow with military and dual-use technology for use in its conflict with Ukraine, according to a report released by the Office of the Director of National Intelligence on July 27.
Ukrainian soldiers test the operation of drones before sending them to the conflict zone in eastern Ukraine. Photo: The Guardian
Restrictions on drone exports could be seen as a “responsible response” to international calls for a peaceful resolution to the conflict, said Zhou Chenming, a researcher at the Beijing-based Yuan Wan Military Science and Technology think tank. “Beijing realizes that it would be wrong to do nothing to prevent the war from escalating,” Zhou said.
The new restrictions are sure to cause serious damage to Chinese companies as both Russia and Ukraine expand their search for foreign drone suppliers.
However, it is difficult to predict whether Russia or Ukraine will be more affected, as it depends on how many drones they import from third parties, said Fu Qianshao, a Chinese military aviation analyst.
In the first half of this year, Russia spent about $562.7 million on drones and other equipment covered by the latest export restrictions, while Ukraine spent only about $11.6 million, according to Chinese customs data.
“China will suffer the most damage, because it used to account for more than 70% of the market share in the international drone market,” Mr. Fu commented.
Professor Ni Lexiong at Shanghai University of Political Science and Law said that to demonstrate that China is a responsible power, Beijing needs to show the world that it is willing to sacrifice its economic interests.
“The new restrictions are also a move to refute Western accusations that Beijing is benefiting from this conflict,” the professor concluded .
Nguyen Tuyet (According to SCMP, Bloomberg)
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