With just one move, China has crippled USA’s drone industry. And guess who’s the biggest loser here? Ukraine! Let’s know more.
The name of the US drone company in question is Skydio. It’s the biggest US drone maker and a key player in Ukraine’s military support. Now, this company is in quite a pickle.
Thanks to fresh sanctions from China, Skydio’s supply of essential drone parts, like batteries, just hit a wall.
Beijing imposed sanctions on this company on October 11. This embargo means Chinese companies can no longer provide essential supplies to Skydio, forcing it into a last-minute scavenger hunt for new suppliers.
This scramble has the US on edge about potential weak links in its own supply chain. Reports say Skydio’s CEO, Adam Bry, recently made a pitstop in Washington, D.C., to discuss the crisis with Deputy Secretary of State Kurt Campbell and other White House officials. In short, he’s waving red flags, asking Uncle Sam for a helping hand.
In a message to customers, Bry didn’t mince words, calling this a “clarifying moment” for the drone industry.
Translation? China’s playing chess, aiming to knock American drone makers like Skydio off the board. Bry is convinced these moves threaten the US drone industry’s future and might even hit national security.
The sanctions have already taken a toll: Skydio told customers on October 30 that they would have to ration out batteries until new suppliers come online, which might not happen until spring.
You might ask, why China is mad at US drone makers? Well, Beijing’s friendship with Russia is well-known. However, what has miffed China the most is USA’s constant support to Taiwan.
China’s ban is apparently a response to the US’s decision to sell attack drones to Taiwan—and it might not be stopping there. Over recent months, Beijing has targeted several US defense companies involved in Taiwan, which includes Skydio’s supplier of batteries, Dongguan Poweramp.
Skydio, trying to navigate the new terrain, is scouting for partnerships in Asia and talking to officials in Taiwan for support. Meanwhile, back in the States, Congress is mulling a bill to keep Chinese tech out of US infrastructure, including drones and batteries. One US official put it bluntly: China’s likely gunning for Skydio to give its hometown hero, DJI, a leg up in the global drone race.
So, in the grand drone chess match, China just took a knight, and Skydio’s trying not to lose the queen.
In this fight between giants, Ukraine has emerged as the biggest loser. Ukraine has been relying on US drones to push back against Russian offensive of late, especially as its missile stockpile runs dry. Now, the drones are also gone.
On the other hand, Russia is getting full support from nations like China and India.
Yes, as per reports, India has been supplying Russia with electronic items that can be used in making drones.
We all know Russia exports oil worth billions of dollars to India every year. This trade is conducted in local currencies, mainly Indian rupees. Russia has amassed billions of Indian rupees in its banks in form of revenue. So, Russia is now putting this money to use by buying electronic items from India.
An Indian company named Innovio Ventures supplied at least 4.9 million dollar worth of electronics, including drones, to Russia, and shipped another 0.6 million worth of goods to Kyrgyzstan, a Central Asian nation that has become a covert route for Russia’s imports of sanctioned items.
That’s why US just last week sanctioned at least 19 Indian firms for their Russia links. Most of these firms are unlikely to face any impact though.
So, it’s BRICS vs West in Ukraine too! And now, US is realising that India and China are too big to be sanctioned! And if they do it, they’re gonna face real consequences.