Amid China Threat, US And Taiwan Team Up To Boost Drone Industry Cooperation To 'De-Risk' Supply Chains

The U.S. and Taiwan are initiating collaboration between their drone companies to create supply chains independent of China. Executives from 26 U.S. drone and anti-drone companies will arrive in Taipei on Sunday for three days of meetings with Taiwanese counterparts, military officials, and researchers.

What Happened: The delegation includes officials from the U.S. Commerce Department, the Pentagon's Defense Innovation Unit, and Dev Shenoy, head of the Defense Department's microelectronics research and engineering. The visit underscores efforts to “de-risk” supply chains amid U.S.-China competition and security concerns over Chinese products with dual civilian and military uses, Financial Times reported on Friday

The mission aims to help US companies find non-Chinese component suppliers or manufacturing partners. Taiwan's Defence Minister, Wellington Koo, stated that the visit is an opportunity for Taiwan to integrate into U.S. supply chains and engage in co-production. This integration could help Taiwan overcome export challenges due to its international status and pressure from China.

Among the visiting companies are AeroVironment , Dedrone, and Northrop Grumman . Taiwan's government is also boosting its drone industry, awarding NT$6.8bn ($210mn) in defence ministry orders to private companies for autonomous platforms, including microdrones and ship-borne reconnaissance drones.

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Why It Matters: The collaboration between the US and Taiwan in the drone industry comes amid rising tensions with China. Recently, the US Air Force has been testing AI-powered drones, such as the XQ-58A Valkyrie, which can significantly alter military warfare by evaluating enemy threats and carrying missiles.

Additionally, the US has approved a $228 million military sale to Taiwan to enhance its aircraft combat readiness. This move is part of a broader strategy to support Taiwan’s defense capabilities.

Moreover, the US has decided to keep a mid-range missile system in the Philippines, despite China’s demands for its removal. This Typhon missile system is seen as crucial for defending Taiwan in the event of a Chinese attack.

China has issued stern warnings to the US regarding interference in its sovereignty. Chinese Ambassador Xie Feng emphasized that the Taiwan question is a critical “red line” in US-China relations.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari