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Economy

Drone export controls won't affect business: insiders

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2015-08-06 09:25Global Times Editor: Li Yan

Restrictions on the export of powerful drones and supercomputer is intended to help maintain China's national security and strengthen controls on sensitive items, the Ministry of Commerce (MOC) said at a monthly press conference Tuesday.

Shen Danyang, spokesperson of the MOC, said including drones and high-performance computers in export controls will help provide a safe trade environment for companies, promote healthy development of the industries and better fulfill international obligations.

Under the new rule announced by the MOC and the General Administration of Customs, starting from August 15, companies that make certain drones and computers specified on the MOC website will have to register with commerce authorities and obtain a license before exporting them.

The items include drones capable of flying for longer than an hour, and above 15,000 meters. Model aircraft and airships however are not in the restricted list.

The companies will need to provide copies of export contracts and documents showing the products' technical specifications and who the intended users are, according to the MOC.

The restrictions came after a Chinese manufactured drone was shot down by Pakistan military in mid-July.

Wang Yaqian, a senior analyst at Beijng-based iResearch Consulting Group, said the restriction this time was mainly from national security considerations while the civil unmanned aircraft industry would not be affected as the products are not equipped with the technology specified in the announcement, the Beijing-based newspaper National Business Daily reported.

China's DJ-Innovations, a leading drone manufacturer which provides 70 percent of the world's civil drones, said the restriction doesn't affect them as none of their products is on the list, the newspaper added.

Yang Jianjun, CEO of Zero Tech, a civil drone innovation company, also said the restriction has not impact on their business as the restriction mainly targets the exports of military unmanned aircraft.

Drones have a limited market and demand in China. About 70 percent of the civil drones made in the country are exported to European countries and the US, according to Wang.

China exported 160,000 civilian drones worth 750 million yuan ($122.5 million) from January to May. The number was 69 times more than the same period last year, while their sales value was 55 times that of the same period in 2014. Almost all of the drones came from the southern city of Shenzhen, Guangdong Province.

  

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