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OPINION DECEMBER 06, 2024 | The Indian Eye 10

China’s Sanctions on Skydio

and Wider Implications

The recent engagement between India and Maldives and its significance lies in prioritizing regional security

along with national priorities of respective countries and in finding a convergence to work towards enhancing

cooperation in various areas at the bilateral and regional level

MUKESH KUMAR

he paper analyses the aspects
of China’s sanctions on Skydio,
Tthe US’ largest drone manu-
facturing company. The paper has
further discussed the possible impli-
cations and way ahead for India
On 11 October 2024, the Chinese
government-imposed sanctions on
the US’ largest drone manufacturing
company, Skydio, due to their sale of
drones to Taiwan. The sanction has
prohibited Chinese companies from
supplying vital critical components,
including drone batteries, to Skydio,
a significant supplier of Ukraine. The
sanctions have disrupted the critical
supply chain for the US and left Sky-
dio scrambling to find and diversify
partners to supply critical compo-
nents.
Currently, Skydio is a major de-
fense partner in Ukraine’s military
campaign against Russia. However,
Chinese sanctions came as a result
of Skydio’s drone contract with Tai-
wan’s National Fire Agency. China
has accused the US of providing mil-
itary equipment, including drones, to Skydio is a major defense partner in Ukraine’s military campaign against Russia. However, Chinese sanctions came as a result of Skydio’s
Taiwan. Chinese sanctions have not drone contract with Taiwan’s National Fire Agency (Agency file photo)
only created a supply chain issue for
Skydio but also have future implica-
tions. wan and intensified sanctions against Chinese Foreign Ministry demanded camera and small size, are highly rec-
What Triggers China? them. These firms are S-3 Aerospace, Washington stop conniving and sup- ognized worldwide, and the success
Cubic Corporation, ACT-1 Federal, porting “Taiwan’s independence” of X10 could potentially affect the
hinese sanctions have come Planate Management Group, Exove- and stop undermining peace and sta- market of DJI drones.
as a result of the US govern- ra, TextOre Inc., TCOM Partnership bility in the Taiwan Strait. A Glimpse of China’s
Cment’s green signal to the sale Limited, Stick Ruder Enterprises and Not only does China’s sanction Dominance
of military equipment, including com- Siera Nevada Corporation. Later, on Skydio represent their worry re-
bat drones, to Taiwan. In September, in October 2024, the US Congress garding the geopolitics involving Tai- anufacturing modern mili-
the Ministry of Foreign Affairs, Re- notified the potential sale of three wan, but the sanctions could also be tary systems, including mis-
public of China (Taiwan), confirmed National Advanced Surface-to-Air examined from the lens of drone com- Msile systems and drones, in-
the US State Department’s approval Missile Systems (NASAMS) with 123 petition between the US and China. volves vital critical components, such
of $228 million in military spare parts missiles worth $1.16 billion and $828 In response to China’s sanctions, the as rare earth and semiconductors.
and reshipment of equipment for million for AN/TPS-77 and AN/TPS- US has alleged that Beijing’s sanc- These rare earth elements are used to
Taiwan, escalating tensions between 78 radar systems. tions are motivated to avoid drone manufacture chips, batteries and oth-
Washington and Beijing. Conse- China has accused the US gov- competition and to maintain its edge er components. China has a strong-
quently, China identified US defense ernment of violating the One-China in the international drone market. hold in rare earth production, repro-
firms extending military support to principle, harming Beijing’s sover- Notably, China produces DJI drones cessing facilities and a global supply
Taiwan. In September 2024, Beijing eignty and security interests in the and holds a dominant position in the chain. China is currently the largest
held nine US arms companies ac- region. Condemning the US for in- commercial drone market. DJI, with producer of rare earth elements, con-
countable for supplying arms to Tai- tervening in its internal affairs, the its multiple variants, high-resolution Continued on next page... >>

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