Camera components installed on UK naval drones transmitted data to an internet address in China, the Telegraph reported on Sunday.
The UK Ministry of Defense was forced to cut off all internet connectivity to the Royal Marines' £12 million fleet of K3 Scout surveillance drones after discovering that Chinese-made components were transmitting information.
The transmission was found during what the ministry said was a routine cyber-vulnerability assessment of the drones and consisted of "heartbeat communications," data that confirms the devices are online and functioning and that have the potential to share location.
However, according to a ministry spokesperson, no evidence was found that any Defense Ministry data or systems were accessed, compromised, or transmitted.
The supplier of the Royal Navy's drones, British defense contractor Kraken Technology Group, had sourced its cameras from a third party that had given it security assurances. A Kraken spokesperson said they were confident that no sensitive information had been shared and that all potential vulnerabilities had been identified and closed.
UK cuts naval drones offline after components sent data to China
The incident raised fears shared by many European countries and the US regarding Chinese-made components and machinery, the Wall Street Journal wrote on Monday.
Kraken recently won a $49 million contract from the US Special Operations Command for its drones, and the US used naval drones for the first time in combat last month, blowing up a submarine and a ship-maintenance facility in an Iranian port. The US also used a naval drone in a rescue mission off the coast of Oman in June.
According to the WSJ, drone makers rely on China specifically for brushless motors, antennas, cameras, and batteries.
Chinese components are much cheaper than those sourced elsewhere, and countries such as Ukraine, which has been going through roughly 10,000 drones a month for over a year, according to the WSJ, can't afford extra costs.
“A German electric engine is five to 10 times more expensive than a Chinese one,” Marc Wietfeld, the co-founder and chief executive of Arx Robotics, a German land-drone maker, told WSJ.
Arx Robotics has now established its supply chain in Europe, with a few components from the US to reduce its dependence on China.
"We pay the price, but we get robustness and durability in return," Wietfeld said at a recent defense show.
However, even if a defense company is willing to pay the price, it can be difficult to keep Chinese components out. While the US banned all new Chinese drones and components late last year, some tiny components in the drone sector may slip through, according to the WSJ.
“It is really, really hard to trace where the stuff comes from if you go all the way down the supply chain, and it is even harder to monitor that on an ongoing basis,” Steve Wright, a consultant who advises governments and companies on drone manufacturing, told the WSJ.
Wright added that he spends about half his time advising clients on how to keep Chinese parts out of systems.