China cites “national security and interests” to restrict drone equipment exports

China Commerce Ministry unveiled measures to limit exports of some drones and drone-related equipment, starting from September 01, by citing the “national security and interests” late Monday suggests Reuters.

The news mentions Beijing’s escalating tension with the United States over access to technology as the key catalyst behind the move.

Reuters also quotes an anonymous spokesperson from China saying, “China's modest expansion of the scope of its drone control this time is an important measure to demonstrate our stance as a responsible major country, to implement global security initiatives, and maintain world peace.”

It should be noted that China is a major global drone exporter and caters to various top-tier economies in that matter, including the US. As per the previous announcements from the US policymakers, China’s DJI provided more than 50% of the drones sold in the US, used mostly for public safety.

“It always strictly complied with and enforced laws and regulations of the countries or regions in which it operates, including China's export control regulatory requirements,” Reuters quotes the DJI.

Market reaction

The news joins the US Federal Reserve (Fed) Bank Loan survey to prod the previous risk-on mood and stop the AUD/USD buyers near 0.6715-20 after marking the week-start recovery from the lowest level in three weeks.

Also read: AUD/USD grinds beneath 0.6730 hurdle ahead of RBA Interest Rate Decision, US PMI