(Credit: Sean Gallop / Staff via Getty Images)
China has sanctioned US drone firm Skydio, barring Chinese firms from supplying parts or doing business with the company.
Skydio is currently supplying products to Ukraine's military but was sanctioned because it was recently approved to sell drones to Taiwan's fire agency. Chinese authorities reportedly visited Skydio's Chinese suppliers and told them to stop providing components to the US company, the Financial Times reports.
Now, Skydio is reportedly in contact with the US government and Taiwan to get help regarding the restrictions and find new supply chain partners. In the meantime, Skydio is reducing the number of batteries it includes with its drones until it can secure a deal with new suppliers.
"This is a clarifying moment for the drone industry," Skydio CEO Adam Bry wrote in a note published on Wednesday, adding: "If there was ever any doubt, this action makes clear that the Chinese government will use supply chains as a weapon to advance their interests over ours. This is an attempt to eliminate the leading American drone company and deepen the world’s dependence on Chinese drone suppliers."
A US official suggested China may have sanctioned Skydio because it's seen as a DJI rival. The US recently restricted imports of drones from Chinese firms this month, frustrating DJI, which is now fighting the restrictions.
China and the US have traded sanctions on each other for years, including on chip companies and other military suppliers. China's sanctions against US firms could continue to expand in the near future as the countries' rivalry over advanced tech presses on.