Bloomberg reports that China is halting sales of drone parts to the U.S. and Europe, causing difficulties for Ukraine.

Chinese manufacturers have begun to restrict the sale of critical components for drones to their clients in the U.S. and Europe, having communicated an export ban from officials in these countries.

Bloomberg reported this on December 9, citing undisclosed sources.

Drones play a crucial role on the battlefield for Ukraine's defense against Russian aggression, ranging from reconnaissance to dropping explosives on designated targets.

Both sides have ramped up production: in 2023, Russia manufactured 140,000 drones and plans to produce 1.4 million by the end of 2024, primarily using Chinese parts. In 2025, Ukraine aims to produce 30,000 long-range drones and claims it has the capacity to manufacture 3 million drones of various types annually, according to the publication.

However, Ukraine will likely need to reassess its supply chain for drone components from China, as experts anticipate an expansion of the export ban on components by Chinese authorities in 2025.

This move by China is a response to the U.S. ban on selling high-bandwidth memory chips and additional semiconductor equipment to them.

As Donald Trump's policies, known for their "hard stance against China," are unlikely to ease tensions, other manufacturers from Japan and Korea may fill the gap left by Chinese suppliers, Bloomberg writes.

While claiming neutrality, Beijing plays a key role in the Russian defense industry by supplying various dual-use goods that support Russia's defense sector. A November media report indicated that the EU has received evidence of China providing lethal assistance to Moscow in the form of strike drones.

Background. Meanwhile, it has become known that Russia has found an "astonishingly simple" way to purchase American chips circumventing sanctions—using intermediary websites, companies from Russia can order chips "with just a few clicks."