Suppliers and intermediaries who ship parts have as much as doubled their prices for foreign customers, who have few alternative sources, as Beijing strengthens enforcement of controls, said purchasers at the Shenzhen Unmanned Aerial Systems Expo in southern China last month.
The nearly $41bn commercial
market has become increasingly important to militaries across the globe as devices meant for civilian use are deployed on battlefields in Ukraine and the Middle East.
Beijing has sought to regulate drone and parts exports to prevent their use in combat by other countries. In recent years, China has demanded exporters apply for special licences that many say are difficult to obtain, especially for component makers that export in smaller volumes.
In the past year, the government has increased the number of technologies subject to controls, while manufacturers and suppliers say enforcement has tightened in recent months as Trump threatened higher tariffs on China.
The restrictions, which apply to components with military and commercial applications, have made it difficult for global drone makers to source parts because few countries provide alternatives.
makes 70-80 per cent of the world’s commercial drones and dominates production of critical elements such as speed controllers, sensors, cameras and propellers, according to analytics provider Drone Industry Insights.
A Turkish drone maker said it had to rely on expensive and unreliable freight forwarders to ensure supply of the restricted components it needed. Those forwarders have ratcheted up prices in recent months.
“For example, last month it was $2,000 for air delivery, but today they want almost $3,500,” said a person from the company.
A French buyer who produces targeting and surveillance drones for military use said he was heavily reliant on Chinese components. He estimated European producers were three years behind their Chinese counterparts.
“We try to make European drones, but we cannot make it with the same technologies as China,” he said.
Restrictions updated in September for thermal imaging cameras are a particular problem. Chinese suppliers now ask for double the price “because they take more risk” in seeking to avoid controls, said the French buyer.
