Done Wars: China Targets U.S. With Export Crackdown

China’s escalating conflict with the US over trade is now extending to the drones that have become a vital part of Ukraine’s defense.

Manufacturers in China recently began limiting sales to the US and Europe of key components used to build unmanned aerial vehicles, according to multiple people with knowledge of the developments, who asked not to be identified discussing sensitive information.

The moves are a prelude to broader export restrictions on drone parts that western officials expect Beijing to enforce in the new year, the people said. Those rules could take the form of license approvals based on the intended use of the components or softer requirements for Chinese companies to notify the government of their shipment plans, according to one of the people.

Representatives for China’s Ministry of Commerce and Ministry of Industry and Information Technology did not respond to a request for comment.

The trade conflict has ratcheted up this month, with Washington slapping fresh curbs on the sale of high-bandwidth memory chips and additional semiconductor gear to China. In response, Beijing banned the sale of dual-use items to the American military and several materials with high-tech and military applications to US companies. The measures, weeks before Donald Trump returns to the presidency with a tough-on-China agenda, have sent prices spiking and upended trade flows as manufacturers sought alternative supplies.

Beijing’s response asserts for the first time that the trade restrictions apply to Chinese goods — or goods with Chinese parts — sold by vendors in and outside of the country, signaling an attempt to replicate the extraterritorial reach of US and European sanctions.