Beijing Sanctions Target US Drone Manufacturer Producing Drones for Ukraine

Beijing’s sanctions on multiple US firms involved in military sales have led to supply chain issues for Skydio, the largest US drone manufacturer that supplies drones to the Ukrainian military.

Skydio claimed its X-10 drone, which incorporates onboard artificial intelligence (AI), was the first US drone to pass Ukraine’s electronic warfare (EW) tests, leading to Kyiv ordering thousands of units.

Beijing introduced the sanctions on Oct. 10 against three US military-linked firms, including Skydio, and 10 senior executives over weapons sales to Taiwan.

The Financial Times (FT), citing unnamed sources reportedly familiar with the matter, said Beijing has blocked Skydio’s sole battery supplier in China from delivering batteries to the US firm.

An unnamed source told the FT that Beijing authorities visited Skydio’s suppliers, including battery manufacturer Dongguan Poweramp, a subsidiary of a Japanese drone battery manufacturer, and ordered them to halt supplies to the US firm.

Skydio said it is forced to ration the number of batteries supplied with their drones until at least early spring. It added that it is seeking alternative suppliers in Asia, including Taiwan.

Skydio CEO Adam Bry, in a note to his customers, called the sanctions a “clarifying moment for the drone industry,” warning that Beijing will use Western reliance on its supply chains as a weapon “to advance their interests.”

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He also said Beijing aims to “eliminate the leading American drone company and deepen the world’s dependence on Chinese drone suppliers,” a view shared by an unnamed US official, who told the FT that “Skydio was targeted by Beijing because it is likely seen as a competitor to [Chinese drone manufacturer] DJI.”

Chinese DJI drones have also seen prolific use in the war in Ukraine by both Ukrainian and Russian troops.

Beijing has also introduced export controls on numerous radio and drone components using standard parcels delivered by air and sea since Sept. 1, including motors and cameras for quadcopters, as well as radio systems, portable walkie-talkies and hunting knives.

An AP News report in early August said certain features on civilian drones will also be restricted as part of Beijing’s initiative to prevent “the proliferation of weapons of mass destruction” likely in response to Western criticisms of its complicit role in the war in Ukraine