China has tightened its export control over critical components for drones, leading to a significant price surge for foreign buyers. Amid escalating trade tensions with the United States, suppliers in China have nearly doubled prices for overseas clients who have few alternative sourcing options, reports Baltimore Chronicle with reference to Financial Times.
At an industry exhibition in Shenzhen, representatives from the drone sector stated that companies which previously purchased Chinese parts at stable prices are now forced to pay much more. A Turkish drone manufacturer noted that just a month ago, air delivery cost $2000, while now the price has risen to nearly $3500.
China is responsible for up to 80% of the world’s commercial drone production, including the manufacturing of most cameras, propellers, sensors, and speed controllers. However, the export of these components is now subject to licensing requirements, significantly complicating global trade. A French drone buyer stated that attempts to build European equivalents are hampered by the inability to use the same technologies as China.
The greatest difficulties have emerged in the field of thermal imaging cameras — their export is now strictly regulated. According to a French importer, Chinese suppliers are demanding double the price, citing increased risk as the reason.
As a result of these restrictions, the shadow market is expanding. In Shenzhen, vendors have been spotted handing out business cards advertising “confidential delivery” services. One such vendor admitted that they are targeting clients from the United States, Europe, and the Middle East.
Some Chinese exporters, including state-owned firms, acknowledge their limited influence over how their products are ultimately used. Zhao Yan of Shanxi Xitou UAV Intelligent Manufacturing offered an analogy: “It’s like a kitchen knife — we make it for slicing vegetables, but how it’s used is up to the buyer.”
Earlier we wrote that China opens market for ukrainian peas.