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US drone maker for Ukraine cannot operate due to Chinese sanctions

China imposed sanctions against Skydio, the largest US drone manufacturer and supplier to the Armed Forces of Ukraine (AFU), blocking the only battery supplier to the US company, The Financial Times reported.

China’s sanctions, imposed on October 11, hit several US groups, including privately held Skydio, in retaliation for Washington’s approval of the sale of attack drones to Taiwan.

As a result, Skydio is forced to look for other suppliers on short notice, with its representatives appealing to US President Joe Biden for help. Skydio CEO Adam Bry called the move an attempt by China to increase the world’s dependence on Chinese drone suppliers.

In response, the US imposed sanctions against two drone suppliers from China and their alleged Russian partners, penalising Chinese companies for supplying complete weapons systems to Russia for the first time, according to CNN.

Washington has long accused China of alleged supporting Russia’s military efforts by supplying dual-use goods and components that can be used in weapons production. Beijing, however, denies the accusations. On Thursday, the US Treasury Department again charged Chinese firms with direct involvement in supplying arms to Moscow.

While the United States previously imposed sanctions on (Chinese) entities providing critical inputs to Russia’s military-industrial base, these are the first U.S. sanctions imposed on (Chinese) entities directly developing and producing complete weapons systems in partnership with Russian firms.

The US accused Xiamen Limbach Aircraft Engine Co. based in the coastal city of Xiamen of producing engines for Russian drones. Officials also blamed Redlepus Vector Industry Shenzhen Co. for collaborating with a Russian defence firm to facilitate the delivery of drones to Russia.

State Department spokesman Matthew Miller declared:

We have seen for some time Chinese companies providing components to Russian companies that Russian companies then use to turn into machinery, weapons, other components that Russia could use in its war.

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