China has announced export controls on certain drones and related equipment, with an aim to protect "national security and interests," amidst increasing technological tensions with the United States. Set to take effect on September 1, the restrictions include limitations on specific drone engines, lasers, communication equipment, and anti-drone systems. The controls also extend to some consumer drones, and the prohibition of civilian drones being exported for military purposes. A spokesperson from China's commerce ministry has referred to the move as a measure to display the country's responsible stance and uphold global security and peace.
The U.S. is a significant market for China's extensive drone manufacturing industry. More than 50% of drones sold in the U.S. are produced by Chinese-based company DJI, which is also popular among public safety agencies. In response to the new regulations, DJI stated that it has always adhered to and enforced the laws of the countries in which it operates, including China's export control requirements. The company also asserted that it has never designed, manufactured, marketed, or sold products for military use.
The decision to curb drone exports follows recent allegations and tensions involving Chinese drone technology. A German retailer accused DJI in March 2022 of leaking data on Ukrainian military positions to Russia, a claim that DJI dismissed as "utterly false." In April, China's commerce ministry condemned U.S. and Western media for spreading "unfounded accusations" that China was exporting drones to the battlefield in Ukraine. These reports were dismissed as an attempt to "smear" Chinese firms.
The latest export controls are part of a broader pattern of technological disputes between China and the U.S. They follow China's announcement last month regarding export controls on some metals used in chipmaking after the U.S. moved to restrict China's access to essential technologies, including chipmaking equipment. The regulations indicate an ongoing strategic maneuvering between the two superpowers as they negotiate their respective technological interests and international positioning.
This article was originally published on Quiver Quantitative