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Drones: Industry & Defence
26OCT

China puts drone-part exports under licence

5 min read
15:07UTC

China will require export licences from 18 November for drone autopilots, heavy-lift motors, swarm radios and counter-drone technology bound for any country, where August's rule covered only US-bound exports. In the same weeks Germany and Japan paid for Ukrainian-designed interceptor drones, the class most likely to use those heavy-lift motors, and the European Commission sent Kyiv €1.24bn for Ukrainian-made drones and missiles.

Key takeaway

China licensed the drone parts while Ukraine became the interceptor maker that Berlin, Tokyo and Brussels pay for.

This briefing mapped
Regulatory
Military
Economic
Legal
Competitive

From 18 November, Chinese exporters need a licence to sell drone autopilots, heavy-lift motors and swarm radios to buyers anywhere; in August the rule covered only US buyers.

Sources profile:This story draws on neutral-leaning sources from China (includes China state media)
China

China will require export licences from 18 November for heavy-lift drone motors, autopilots, swarm radios and drone jet engines. The rule, published on 19 October, applies to buyers in every country, where August's rule covered only US-bound shipments.

Beijing can still approve each sale. But every licence names the buyer and end user. That gives China a ledger of who builds long-range and interceptor drones, and a quiet way to slow any one of them. 

Friedrich Merz brought more than €1.3bn to Kyiv on 4 October, part of it to build tens of thousands of Quantum Systems interceptors in Ukraine; at home, Berlin bought TYTAN's drone shield without a tender.

Sources profile:This story draws on neutral-leaning sources from Ukraine
Ukraine

Germany will pay for Ukraine to build several tens of thousands of interceptor drones, Chancellor Friedrich Merz said in Kyiv on 4 October. A joint venture between Quantum Systems and a Ukrainian partner will build them.

At home, the Bundeswehr's procurement office gave a Munich start-up a counter-drone order on 16 October. It skipped a public contest, citing urgency. 

Brave1's Andrii Hrytseniuk says seven combat-tested interceptor types now hunt Russia's jet-powered Gerans, with orders past 1,000 and 22 teams building faster ones.

Sources profile:This story draws on centre-left-leaning sources from Ukraine
Ukraine

Ukraine now fights Russia's jet-powered drones with seven types of interceptor, all tested in combat, the head of the Brave1 defence-tech cluster said on 18 October. Orders for these anti-jet drones have passed 1,000.

On 11 October the defence ministry said contracts were up 5.5 times on last year, but deliveries only about 3.7 times. Those ratios suggest deliveries trail orders, but no totals were published. 

The European Commission paid Ukraine €1.24bn on 8 October to buy Ukrainian-made drones, interceptors, drone ammunition and missiles, with €15.4bn of this year's defence money still to come.

Sources profile:This story draws on neutral-leaning sources from Belgium
Belgium

The European Commission paid Ukraine €1.24bn on 8 October to buy drones, interceptors and missiles made by Ukrainian firms. The money comes from the defence part of a €90bn EU loan.

Brussels says €15.4bn of the loan's defence money for 2026 remains. It says more payments will follow, but has set no dates. 

Raytheon won $729m to supply the US Army's counter-drone kit to Qatar and Jordan, and Kuwait bought a £370m system from MARSS, built in Bristol.

Sources profile:This story draws on neutral-leaning sources

Defence Minister Shinjiro Koizumi said on 9 October that Japan has signed to buy interceptor drones from Ukraine's SkyFall, a maker that sat outside its summer trial.

Sources profile:This story draws on neutral-leaning sources

Japan's defence ministry has signed a contract to buy interceptor drones from SkyFall, a Ukrainian maker, Defence Minister Shinjiro Koizumi said on 9 October. The model, number and price stay secret.

SkyFall never entered the summer contest Japan ran on four interceptors. Former defence minister Itsunori Onodera described the purchase as a trial on 1 October. 

South Korea's arms procurement agency banned LIG D&A, formerly LIG Nex1, from new government bids for 24 months over an alleged bribery case, putting a 1.9tn won KF-21 missile bid at risk.

Sources profile:This story draws on neutral-leaning sources

South Korea's arms procurement agency barred LIG D&A, the missile maker formerly called LIG Nex1, from government bids for 24 months around 20 October. The ban follows a bribery case against an agency official.

No court has ruled. Unless a judge pauses the ban, rival Hanwha Aerospace could take a 1.9tn won job fitting missiles to the KF-21 fighter. 

Satellite images of 21 October show at least 33 air-defence positions built since spring around Alabuga, the Tatarstan zone where Russia makes its Geran attack drones.

Sources profile:This story draws on mixed-leaning sources from Ukraine
Ukraine

Satellite images from 21 October show at least 33 air-defence positions around Alabuga, the Tatarstan factory zone where Russia makes its Geran attack drones. Anti-drone nets now cover some workshops.

Russia is growing the plant while it fortifies it. Ukrainian drones that reach the site now meet Pantsir and Tor systems, and an estimated 42,000 square metres of it lies below ground. 

Norway's Kongsberg will spend more than 200m zlotys on a Pomeranian plant to build counter-drone systems for Poland's SAN programme, with series output from 2028.

Sources profile:This story draws on neutral-leaning sources from United States
United States

Norway's Kongsberg will spend more than 200m zlotys on a counter-drone factory near Gdańsk, Gdynia and Sopot, the company said on 13 October. It will build and service kit for Poland's national counter-drone programme.

Series output could start in the first half of 2028. EU defence loans cover much of the programme's cost, Defense News reports. 

India's Defence Acquisition Council approved about Rs 2.12 lakh crore of proposals on 26 October, including long-range kamikaze drones and counter-drone systems to protect tanks.

Sources profile:This story draws on mixed-leaning sources from United Kingdom
United Kingdom

India's Defence Acquisition Council approved buying plans worth about Rs 2.12 lakh crore for its Army, navy and air force on 26 October. The Army's list includes long-range kamikaze drones and counter-drone systems to protect tanks.

This is a first approval, not a contract. Each item still needs bids, trials and price talks, and about 82 per cent of the value is meant for Indian firms. 

France's arms agency took up an option for more KNDS and Delair Damocles loitering munitions, and its prison service awarded €34m of counter-drone contracts on 13 October.

Sources profile:This story draws on neutral-leaning sources

France's arms agency ordered more Damocles loitering munitions from KNDS and Delair by taking up an option in a 2024 contract, KNDS said on 13 October. An artillery regiment will form a battery of long-range loitering munitions.

The same day, France's prison service published €34m of anti-drone contracts. Unlike the Army purchase, both prison lots went to competition. 

The UAE's EDGE Group signed at the Marrakech Air Show to supply DESERT STING 16 glide bombs and THUNDER P-31 guidance kits for Morocco's armed drones.

Sources profile:This story draws on neutral-leaning sources

Emirati arms maker EDGE Group signed a deal on 9 October to supply guided glide bombs and guidance kits for Morocco's armed drones. EDGE gave no value.

The kit is for the Royal Moroccan Air Force's armed drones, which include Turkish-built TB2s. A separate memorandum looks at making small arms and aero engines inside Morocco. 

Taiwan's Thunder Tiger says all 1,520 of its attack drones for the Pentagon's Gauntlet I passed inspection, and it signed with AeroVironment to carry Switchblade munitions.

Sources profile:This story draws on neutral-leaning sources from Taiwan
Taiwan
LeftRight

Denmark's defence procurement agency will buy 26 Saab Trackfire gun mounts for its frigates without competition, valued at 334m Danish kroner, to engage flying and sailing drones.

Sources profile:This story draws on neutral-leaning sources

Denmark will buy 26 Saab Trackfire gun mounts without a tender, a 15 October notice shows. The mounts let its frigates fight drones in the air and at sea. It also bought 50 small strike drones for tests.

The Netherlands made its own direct award, to UMS Skeldar for an anti-submarine drone. It entered the price as one cent. 

Lisbon's Beyond Vision raised more than €28m to double its Alverca factory, and Calgary's North Vector Dynamics raised C$29m for a 3kg counter-drone missile.

Sources profile:This story draws on neutral-leaning sources

Two drone start-ups raised money in late October. Lisbon's Beyond Vision raised more than €28m and is doubling its factory, while Calgary's North Vector Dynamics raised C$29m for a 3kg anti-drone missile.

North Vector's missile is built to shoot down drones. Beyond Vision builds surveillance and interceptor drones and will spend on production and swarm software. 

The Nigerian Air Force listed 12 Turkish Aksungur and two Chinese CH-4D armed drones as expected aircraft on 25 October, with no contract published.

Sources profile:This story draws on neutral-leaning sources

Nigeria's air force listed 12 Turkish Aksungur and two Chinese CH-4D armed drones among its expected new aircraft on 25 October. No contract, price or delivery date has been published.

Nigeria already flies both Turkish and Chinese armed drones, Military Africa reports. On this list, Turkish drones outnumber Chinese ones six to one. 

Different Perspectives
MOFCOM
MOFCOM
China's commerce ministry, customs administration and the Central Military Commission's equipment department published Announcement No. 49 on 19 October, licensing key drone parts for every destination from 18 November. Exporters with compliance systems can apply for general licences covering repeated shipments.
Andrii Hrytseniuk, Brave1
Andrii Hrytseniuk, Brave1
The Brave1 head said on 18 October that seven combat-tested interceptor types are used against jet-powered Gerans, with 22 teams building faster ones. He expects Ukraine to match Russia's drone output, but not quickly.
Friedrich Merz
Friedrich Merz
The chancellor announced in Kyiv on 4 October a package of more than €1.3bn, including money to produce interceptor drones. Quantum Systems says its joint venture with WIY Drones will build several tens of thousands in Ukraine.
Shinjiro Koizumi
Shinjiro Koizumi
Japan's defence minister said on 9 October that his ministry had signed to buy SkyFall interceptors and is working towards early delivery. SkyFall was not among the four types ATLA tested; model, quantity and price are undisclosed.
European Commission
European Commission
the Commission paid Ukraine €1.24bn on 8 October for Ukrainian-made drones, interceptors, drone ammunition and missiles. It says €15.4bn of the loan's 2026 defence money remains and that more payments will follow.