China is restricting the supply of drone components to the US and Europe, which are also utilized in Ukraine.

Chinese manufacturers have begun to restrict sales of key components used in the production of unmanned aerial vehicles (UAVs), which Ukrainian manufacturers rely on. This is reported by Bloomberg citing sources.

It is noted that these actions may precede broader export restrictions on drone parts that Western officials expect Beijing to implement in the new year. According to one of Bloomberg's sources, these regulations could take the form of licensing requirements for the use of components or softer mandates for Chinese companies to inform the government about their supply plans.

Previously, the United States imposed restrictions on the sale of high-capacity memory chips and additional semiconductor equipment to China.

In response, China banned the sale of dual-use goods to American military services, as well as certain high-tech and military-grade materials to U.S. companies.

According to sources, the restrictions on drone component supplies have impacted both American and European companies. They report that Chinese manufacturers of engines, batteries, and flight controllers have limited supply volumes or completely halted them.

Western countries are attempting to produce and assemble drones outside of China to secure their supply chains. However, the country remains a hub for manufacturing affordable equipment for these devices. According to a report from the Center for Strategic and International Studies in the U.S., China controls nearly 80% of the commercial drone market.

Several U.S. government agencies are monitoring this issue, sources familiar with the matter stated. They mentioned that the State Department and the Department of Commerce have reached out—or plan to do so—to affected American companies and are working on finding alternative sources for engines, batteries, and magnets.

As Bloomberg notes, many UAV manufacturers in Ukraine depend on Chinese components to produce cost-effective and efficient weapons.