Measures expected to help civilian drones expand global outreach

China's optimized export control measures for unmanned aerial vehicles, commonly known as drones, are expected to help domestic civilian drone manufacturers expand their presence in overseas markets, as well as bolster technological innovation and industrial upgrading in the sector, experts said on Thursday.

The adjustment will be conducive to the development of the whole drone industrial chain that covers raw materials supply, component manufacturing and industry applications, while further improving the competitiveness of domestically developed drone products in the international market, they added.

Their comments came after the Ministry of Commerce announced on Wednesday that it had optimized and adjusted export controls on certain types of drones and some drone-related components.

China will remove temporary controls on certain consumer-grade drones, and prohibit the export of civilian drones, which are not included in the export control list, for use in the proliferation of weapons of mass destruction, terrorist activities or military purposes, the ministry said. The new measures will take effect starting on Sept 1.

The ministry has adjusted the control standards for some important components of drones, such as infrared imaging equipment and lasers for target indication. The move will better safeguard China's national security and interests, and ensure the security and stability of global industrial and supply chains, a ministry spokesperson said.

The Chinese government firmly supports Chinese companies in conducting global trade and cooperation in the civilian drone sector, and opposes the illegal use of civilian drones for non-peaceful purposes, the spokesperson said, adding that China would continue to track and assess the situation of drone exports and make timely adjustments and improvements to relevant policies.

The adjustments came after China announced export control measures in July 2023 on certain drones and a number of items of drone-related equipment, including lasers, communication instruments, hyperspectral cameras and anti-drone systems.

Yang Jincai, director of the Shenzhen Unmanned Aerial Vehicle Industry Association in Guangdong province, said the cancellation of temporary controls targeting certain consumer-grade drones will help more Chinese drone makers expand their footprint abroad and develop more high-end and advanced drones to satisfy international demand.

Yang said the optimized export control measures are good news for the development of China's drone industry, as the move will encourage domestic drone enterprises to increase their research and development spending, promote technological advancements and enhance the core competitiveness of drone products globally.

DJI, the world's largest commercial drone manufacturer by market share, said in a statement to China Daily, "We are pleased to note the adjustments made to the export control measures by the Ministry of Commerce."

It added that the revised measures are "expected to be more favorable for the development and technology application of the entire drone industry".

DJI stressed that its products are for civilian use only, emphasizing that "we have never designed, developed or manufactured military-grade equipment, we have never adapted our products or pursued business opportunities for combat operations. We have never marketed or sold our products for combat use in any country".

The Shenzhen-based company said it will continue to strictly comply with and implement China's export control regulations, and the applicable laws and regulations of the countries and regions where it operates.

Pan Jun, a visiting professor at Donghua University in Shanghai, said the export control adjustment means that Chinese drone enterprises will have more opportunities to enter the international market, adding that it will have a positive impact on the whole industrial chain of drones, including raw material supply, production, sales and investments.

The scale of China's civilian drone market reached 165 billion yuan ($22.8 billion) in 2023, an increase of 37.96 percent year-on-year, according to a report released by market research company AskCI Consulting. The figure is expected to reach 176.5 billion yuan this year.

Pan Helin, a member of the Ministry of Industry and Information Technology's Expert Committee for Information and Communication Economy, said, "The move will enhance the global competitiveness of Chinese drone makers, reduce the compliance costs of these enterprises and benefit the high-quality development of China's drone sector."