China imposes export controls on dual-use drones as the US remains the largest export destination

Amid the US military aid to Ukraine and an intensifying technology export restrictions against each other between the US and China, China announced fresh export controls of drones for military use. It is worth noting that the US remains China's largest export market for drones under the latest regulations.

According to orders No. 27 and No. 28 by the Ministry of Commerce of China, announced on July 31, China will begin imposing export controls on drones with certain engines, lasers, infrared imaging equipment, and communication equipment starting on September 1. The measures will be implemented for two years. Even products that do not meet the criteria will be under export control if exporters are aware that these products may be used for the proliferation of weapons of mass destruction, terrorist activities, or military purposes.

According to Associated Press, the Ministry of Commerce of China said that since the war in Ukraine, there has been a continuous increase in the risk of certain high-specification and high-performance civilian unmanned aerial vehicles being used for military purposes. Reuters quoted a spokesperson saying that the measures reflected China's commitment as a responsible major nation, aligned with global security initiatives, and upheld world peace.

DJI, the giant in the global drone industry and is already on the entity list of the Department of Commerce of the US, said that it strictly complied with and enforced the laws and regulations of the countries or regions in which it operates, including in China, reports Reuters.

The export restrictions came on the heels of similar measures by China to impose export controls on germanium and gallium announced in early July.

Data from China Customs shows that the US was the largest importer of the products expected to be under export controls in 2022, followed by Indonesia and India.

Source:China Customs, August 2023