Official U.S. government announcements or credible news reports

China Sanctions U.S. Drone Maker Skydio, Causing Supply Chain Crisis

Oct 31, 2024, 02:37 AM

China has imposed sanctions on Skydio, the largest U.S. drone manufacturer, which supplies drones to Ukraine for intelligence gathering. The sanctions, imposed by Beijing, include a ban on Chinese organizations from providing critical components, such as batteries, to Skydio, leading to a significant supply chain crisis for the company. This action marks a notable instance of China weaponizing its supply chain against a U.S. company, a tactic previously used against Japan with rare earth materials. The impact of the sanctions is severe enough that it has been escalated to the Deputy Secretary of State and the White House. The sanctions are seemingly at the behest of Russia.