US Drone Maker Slams China Sanctions, Calls It 'An Attempt To Eliminate The Leading American Drone Company'

Skydio, a prominent U.S. drone manufacturer, is confronting a supply chain crisis due to recent sanctions imposed by China. These sanctions, effective since Oct. 11, have halted Chinese companies from providing essential components, such as batteries, to Skydio.

What Happened: The sanctions are a direct response to the U.S. government’s decision to approve the sale of attack drones to Taiwan. Skydio, which supplies drones to Ukraine for intelligence and reconnaissance purposes, is now urgently seeking alternative suppliers. CEO Adam Bry has reached out to the Biden administration for assistance, meeting with U.S. Deputy Secretary of State Kurt Campbell and other senior officials.

"This is an attempt to eliminate the leading American drone company and deepen the world's dependence on Chinese drone suppliers," he said.

Skydio has informed its customers about the rationing of batteries due to the sanctions and anticipates securing new suppliers by spring. Discussions are ongoing with potential suppliers in Asia, including Taiwan. U.S. officials are also engaging with Asian allies to support Skydio.

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The sanctions highlight the vulnerability of U.S. companies reliant on Chinese supply chains. This situation coincides with U.S. legislative considerations to ban drones from DJI, a dominant Chinese drone manufacturer. U.S. officials believe Skydio was targeted due to its competitive stance against DJI.

Why It Matters: The sanctions on Skydio come amid heightened tensions between the U.S. and China over Taiwan. In September, the U.S. approved $567 million in defense support for Taiwan, aiming to bolster its military amid growing concerns over China’s activities. This move followed Taiwan’s complaints about delayed U.S. arms deliveries, including upgraded fighter jets.

Moreover, in October, Chinese President Xi Jinping reportedly urged U.S. President Joe Biden to adjust the language regarding Taiwan’s independence, emphasizing the sensitive nature of U.S.-China relations. The ongoing geopolitical dynamics underscore the strategic importance of Taiwan in the Asia-Pacific region and the potential implications for global supply chains and diplomatic relations.

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Image via Unsplash

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