China Announces Sanctions On US drone Company
We turn our attention now to Asia, where China and the US are at each other’s necks in a tit-for-tat battle over drone production, and China is telling the US that not only do they know how to play the sanctions game, but they too can. Welcome to the multipolar world!!
The United States has been imposing sanctions and blockades for over six years. It’s like a child throwing a tantrum, thinking it can stop China’s progress. But lo and behold! China keeps trucking like a mighty locomotive that can’t be derailed.
This time, U.S. drone manufacturer Skydio feels the heat and squeeze as new Chinese sanctions threaten to disrupt its supply chain. This latest move matters, especially as Skydio and other American companies push for self-reliance in critical tech.
Skydio, the largest U.S. drone maker, faces a supply chain crisis after Chinese sanctions linked to U.S. arms sales to Taiwan. Skydio’s sole battery supplier in China halted supply, forcing the company to ration batteries. Skydio has sought help from the White House, even accusing China of trying to eliminate it as a competitor. Ironically, Skydio was a significant player in lobbying against Chinese drone companies and actively involved in U.S.-Taiwan drone collaboration.
China Announces Sanctions On US drone Company
On October 30th, Skydio announced it’s facing serious challenges due to Chinese sanctions. These sanctions come as part of an intensifying trade war, with the U.S. and China targeting each other’s tech industries. For Skydio, it’s not just politics — it’s business. China’s sanctions directly affect components essential to the drones they manufacture.
So, let’s take you back in time. For many years the USA have sanctioned Chinese companies, hitting Huawei especially hard. For example, In August of 2024, the U.S. added 42 Chinese companies to its “Entity List,” [whatever that means] restricting their access to U.S. technology over concerns about potential violations of trade restrictions with Russia. Then again, in May 2024, the U.S. sanctioned 37 Chinese companies associated with quantum computing and surveillance technologies, citing potential military applications that could threaten U.S. national security.
According to the US, these actions align with a broader strategy to prevent the flow of sensitive technology to adversaries, especially given China’s advancements in these fields and past incidents.
This time, though, the tables have turned, and China has also retaliated, and the US is crying wolf.
So, what exactly are these sanctions? China has banned the importation of critical materials, specifically gallium and germanium. These are metals used in everything from semiconductors to optics and advanced electronics — components that Skydio’s drones rely on. Without a steady supply, production costs could skyrocket, and delays may be inevitable.
Chinese authorities visited Skydio’s suppliers and ordered them to cut off ties with them. The company is now engaging with companies in Asia, including in Taiwan to find solutions.
For context, Skydio is the largest drone manufacturer in the United States. Among other things, it sent thousands of its drones to Ukraine with protection from electronic warfare.
The fatal decision came about due to the delivery of drones to Taiwan. China immediately completely cut off the supply of batteries for Skydio drones. This is a huge blow – because China controls about 95% of world drone manufacturing. Now Skydio risks finding itself literally on the verge of bankruptcy. The position of the Chinese DJI as the world leader in the drone market will be strengthened.
China not only announced sanctions on Skydio, but they also placed bans on some of the largest US defence giants – Northrop Grunman, Lockheed Martin, Raytheon, Boeing and Anduril, and these companies have started having problems with a shortage of components and rare earth metals. It’s just that 95% of those identical rare earths come to the US from China.
The sanctions imposed by China could further complicate the F-35 program, as David Sutton, Director of Asia-Pacific at Lockheed Martin, is on the sanctions list. Lockheed Martin will no longer have access to funds or parts from China. This highlights the interconnectedness of national security and supply chain security in a globalised world and raises concerns about the reliability of F-35s delivered after October 2020.
Skydio will likely need to look for alternative suppliers outside of China. However, finding and qualifying new suppliers can be costly and time-consuming. But this goes beyond just one company. As more companies get caught in the crossfire, we may see a significant shift in how — and where — American tech companies source their materials.
China’s response highlights a double standard: while the U.S. frequently weaponises the global supply chain through sanctions and trade barriers, it calls foul when faced with countermeasures. Recent investigations acknowledge China’s global lead in key tech sectors and the ineffectiveness of U.S. tariffs and sanctions. The takeaway? Cooperation, not confrontation, is the path forward—something the U.S. may need time to grasp fully.
The US must be scratching its head, wondering what went wrong. Did they think a few sanctions would be enough to bring China to a grinding halt? Well, sorry to disappoint, America. China is like a superhero with an indestructible force field. No matter how hard you try to hold it back, it will always find a way to move forward.
It’s as if the US is playing a game of whack-a-mole, and every time they try to hit China with a sanction, China pops up stronger and more determined than ever. The more they try to blockade, the more creative China becomes in finding alternative routes and solutions.
So, after six long years of trying and failing, it’s time for the US to realise that you can’t stop China’s march forward. It’s like trying to stop a tsunami with a paper fan. Good luck with that.
