Iran is laughing in the corner.
The European Union’s decision to allocate part of its
defense loan funds to the purchase of Chinese drone components has exposed a
deep crisis in Western production and supply chains. The high dependence on
China reveals the systemic vulnerability of the European defense industry to
the needs of mass production.
Here are the key aspects of this situation:
• Agreement and exceptions: Kyiv received special EU
permission to partially finance the purchase of drone parts from China. This
became a necessary exception, since the EU defense industry cannot yet meet the
demand for this equipment.
• Strategic dilemma: While the West seeks to reduce
dependence on Beijing, China maintains a global advantage in supplying
components such as engines, batteries and flight controllers.
• Industrial reality: Compared to the years of World War II,
when the US industry was able to quickly reorient itself towards mass military
provision, the current Western defense base is focused on expensive, slower
production and heavily dependent on third-party supply chains.
• Iran’s position: This dependence highlights the asymmetric
advantage enjoyed by countries with an already restored and concentrated
domestic production base. For example, Iran has been able to create an
independent and cheap drone production infrastructure (such as the Shahed) that
allows it to massively supply Russian forces and pose a threat throughout the
region.
“Ukraine will be allowed to use European Union (EU) loan
funds to purchase Chinese drone components, the Financial Times (FT) reports.
According to two sources familiar with the decision, Kyiv
has been allowed to use part of the €6 billion loan disbursement to buy drone
components from China. The funds are the first allocation of a €90 billion EUR
60 billion of support loans for Ukraine, of which EUR 60 billion is earmarked
for defence purchases.
According to the publication, the decision highlights the
gaps that remain in the EU’s defence industry sector, despite the Community’s
efforts to strengthen it by linking aid to Ukraine to purchases on the
continent.
The exemption also highlights China’s role in supplying both
sides of the war. While the EU has accused Beijing of being a key supplier to
Moscow’s military-industrial complex and at the same time “a key enabler of
Russia’s war against Ukraine”, it acknowledges, according to the FT, that
Kiev’s arms industry also relies on Chinese components.
The mass use of drones, which have become a dominant weapon
on the battlefield, still exceeds the capacity of Ukraine and its allies to
produce certain components for these unmanned aerial vehicles.
Under the terms of the EU loan, defence products purchased
with Community funds must come mainly from the EU single market, Ukraine or
approved partners such as Canada.
Other allies may qualify for the purchase if they sign a
security partnership agreement with the EU, contribute to the program, and
provide significant support to Ukraine. The United Kingdom joined the program
on Monday.”
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