China Imposes Sanctions on US Drones Amid Rising Tensions
Officer with Skydio drone (Photo: Skydio)
On Oct. 31, 2024, China imposed new rounds of sanctions on Skydio, a US drone manufacturer and a key supplier to Ukraine’s military forces. Tensions between the US and China rose as this sanction added a fresh layer to the two countries’ complex relationship. China used its supply chain leverage to potentially disrupt the US defense sector and Ukraine’s ongoing efforts against Russian forces. Amidst this time of tension and warfare, this move highlights China’s importance in the global supply chain. By weaponizing its dominant role, this move also serves as a geopolitical tactic, with deeper implications for international relations and technological dependencies worldwide.
Skydio, a company based in California, is known for its autonomous drones. They have been a critical asset to Ukraine in its defense against Russia, providing drones for surveillance and reconnaissance. China placed sanctions targeting Skydio’s battery supply, which are mainly produced in China. The company is left scrambling for replacements and is not rationing batteries for the future drones. Instead of having multiple, they could only allow one battery per drone for new deliveries. This sudden restriction reveals the company’s vulnerabilities and the US defense sector’s reliance on Chinese manufacturing, as key components such as batteries play a key role in many technology and defense products. This supply chain disruption affects companies beyond Skydio, and others are now signaling the risk of reliance on Chinese suppliers. However, China asserts its controls over these supply channels, so the US may be pressured to reevaluate its supply chain security and prioritize diversification efforts.
Skydio’s drones use highly specialized lithium-ion or lithium-polymer batteries. These unique batteries are designed with lightweight constriction, maximum energy density, and efficient power output that is crucial for long flight times and complex aerial maneuvers. They are designed to endure high-energy demands and different temperatures, essential for drones that operate internationally under varying conditions. They have very high standards of production and require stable, prolonged energy sources. China, as the dominant supplier of these batteries, is capable in production because it controls large reserves of essential raw materials such as lithium and cobalt. Furthermore, their unmatched supply chain allows for streamlined production with high-quality standards at low costs. China’s battery industry is thriving as it is backed by the government and has an established expertise in the field. Companies are left dependent on Chinese suppliers as their battery industry is unmatched internationally.
Skydio is the largest drone manufacturer in the United States. Photo Wikimedia Commons, Dronetto, CC BY-SA 4.0
China’s sanction has a heavy impact on the Russia-Ukraine War as Ukraine is heavily dependent on advanced technological support to bolster its defenses. With fewer resources and limited battery capacity for the new products, Ukraine could face potential setbacks in its tactical abilities. This could even further shift certain dynamics in the ongoing war. This disruption not only affects these countries directly but also creates a geopolitical ripple effect for countries indirectly involved in the conflict. If China continues to restrict its supply chains as a form of leverage, other countries allying with Ukraine may also be negatively affected and targeted. This will prompt countries to secure their own supply chain independence.
This transition may prompt countries like India, Vietnam, or ones in Eastern Europe to rise as alternative manufacturing hubs. China’s role as a supply chain power leader can cause disruption beyond immediate economic or military objectives. It hints at a long-term goal of encouraging the US and other Western countries to develop self-reliant manufacturing capabilities or to establish alternative suppliers. Companies in the United States may actively look to bring critical supply chains closer to home or find nations with less geopolitical risk. Additionally, countries are also actively looking towards international collaborations to aid each other’s goal of achieving technological independence. The United States and Western Europe have initiated conversations of joint manufacturing semiconductors. A similar partnership may emerge for other important technologies and materials like drone batteries.