"Drone Parts Prices Double as China Tightens Export Controls"

Drone Parts Prices Double
Export Controls Tightened to Prevent Military Use

The Financial Times (FT) reported on June 9 (local time) that the cost of purchasing drone parts has surged as China has tightened export controls on key drone components.

A reconnaissance and surveillance drone is departing from the drone mothership and tracking a maritime target. The reconnaissance and surveillance drone participating in this exercise was developed and operated for tuna school detection; its endurance is 3 hours; and its speed is approximately 80 km/h.

According to buyers who attended the Unmanned Aerial System Expo recently held in Shenzhen, China, local suppliers and intermediaries have raised prices for foreign customers by as much as double. This is a result of the Chinese government strengthening export controls in order to prevent the potential military use of drone parts.

The global commercial drone market is valued at approximately $41 billion. Drones designed for civilian use are increasingly being deployed on battlefields in places such as Ukraine and the Middle East, which has heightened their military significance. In response, China now requires complex special permits for companies exporting drones and related components. Small and medium-sized parts manufacturers, especially those exporting in small quantities, are facing significant difficulties in navigating these procedures.

Since last year, the Chinese government has expanded the scope of technologies subject to export controls. More recently, as tariff pressures have intensified following the inauguration of U.S. President Donald Trump, China has further tightened enforcement.

China currently produces 70 to 80 percent of the world’s commercial drones and effectively dominates the market for key components such as speed controllers, sensors, cameras, and propellers. As a result, global manufacturers are struggling to find alternative suppliers.

A Turkish drone manufacturer told FT, "To secure the necessary parts, we have no choice but to rely on expensive and unreliable shipping companies," adding, "Last month, air shipping cost $2,000, but this month we were quoted $3,500."

A representative from a French company that produces military reconnaissance drones also said, "Europe is more than three years behind China technologically," and, "It is impossible to manufacture drones at the level of Chinese products using European-made parts." In particular, the price of thermal imaging camera components has more than doubled due to export controls, and suppliers are raising prices to offset their own increased costs, which is putting additional burden on buyers.

Khalil Esterhamrari, director of the China-Iran Cooperation Center, said, "Our plan to supply firefighting drones to Iranian customers was derailed due to thorough inspections by Chinese customs," and, "Currently, only agricultural drones can be exported."

Zhao Yan, head of the drone exporter Shanxi Shitou UAV Intelligent Manufacturing, said, "We only sell products to buyers who comply with regulations, through legal procedures," and, "Whether a knife is used for cooking or for another purpose ultimately depends on the user."