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VisitChina Sanctions Skydio, US Drone Supplier to Ukraine, Causing Battery Shortage
Oct 31, 2024, 09:33 AM
China has imposed sanctions on Skydio, the largest US drone manufacturer and a supplier to Ukraine's military, creating a supply chain crisis for the company. The sanctions, imposed on October 11, ban Chinese companies from providing Skydio with critical components, including batteries. As a result, Skydio is limiting customers to one battery per drone and is scrambling to find alternative suppliers outside China. The company's CEO, Adam Bry, stated that this action underscores how the Chinese government uses supply chains as a weapon to advance their interests. Skydio has sought assistance from the US government, and the issue has been escalated to high-level officials, including the Deputy Secretary of State and the White House. The sanctions are in retaliation for the US approval of the sale of drones to Taiwan and highlight the risks of reliance on Chinese supply chains for critical components.
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Diplomatic negotiations • 25%
Economic sanctions • 25%
Legal actions in international trade bodies • 25%
No significant action • 25%
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No • 50%
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Department of Commerce • 25%
Department of State • 25%
Department of Defense • 25%
Other • 25%
Resolved with non-Chinese suppliers • 25%
Resolved with Chinese negotiations • 25%
Unresolved • 25%
Other • 25%
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Resolution through negotiation • 25%
Resolution through international mediation • 25%
Escalation to broader trade conflict • 25%
Continued sanctions • 25%
Receives government intervention • 25%
Secures new supplier outside China • 25%
Develops in-house battery production • 25%
Reduces production or sales • 25%