Tit-for-Tat: China Punishes the U.S. Drone Industry in the Latest Round of Skirmishes

Author: Ishveena Singh

China has sanctioned 11 American drone manufacturers, including Skydio, BRINC Drones, and Boeing subsidiary Insitu, by adding them to its "Unreliable Entity List," which subjects these companies to a wide range of trade sanctions and export restrictions.

The Chinese government accused American drone manufacturers of engaging in "military technology cooperation" with Taiwan. These 11 drone companies are now prohibited from conducting import and export activities with China and are banned from making new investments in the country.

Here is the complete list of affected companies:

• Skydio: A leading American drone manufacturer, focusing on autonomous flight and public safety applications.

• BRINC Drones: Develops drones designed for first responders, with an emphasis on indoor tactical operations and lifesaving missions.

• Red Six Solutions: Provides national security and intelligence consulting services to government and defense clients.

• SYNEXXUS: Offers battlefield data systems and tactical network solutions for defense operations.

• Firestorm Labs: Builds modular drone platforms for rapid manufacturing and military applications.

• Kratos Unmanned Aerial Systems: Develops high-performance unmanned aircraft for defense training and combat missions.

• HavocAI: Focuses on applying artificial intelligence to modern battlefield operations and drone swarm coordination.

• Neros Technologies: Manufactures drone-mounted electronic warfare systems for defense and tactical purposes.

• Domo Tactical Communications (DTC): Provides secure tactical communication systems for military and law enforcement use.

• Rapid Flight: Designs and manufactures customizable long-endurance drones for defense missions.

• Insitu: A Boeing subsidiary that produces drones for intelligence, surveillance, and reconnaissance (ISR) missions.

These sanctions come at a tense moment in the economic and trade relationship between the two countries. Last week, Trump announced a base tariff of 10% on all imports, with an additional 34% tariff on Chinese products. In response, China said it would impose a 34% tariff on all American imports starting this week.

Skydio, known for its advanced autonomous drones, has already felt the impact. The company relies on Chinese suppliers for certain components, particularly batteries. Due to the sanctions taking effect, Skydio CEO Adam Bry has informed customers that battery supplies will be limited over the coming months. To address this shortage, Skydio has restricted battery allocations to one per drone and is actively seeking alternative suppliers outside of China.

Bry emphasized the broader implications of China's actions, stating, "This move clearly shows that the Chinese government will use supply chains as a weapon to advance their interests at our expense. The drone market has traditionally been dominated by Chinese companies, but these firms are rapidly losing market share to Skydio and our Western counterparts. This is an attempt to eliminate leading American drone companies and deepen the world's reliance on Chinese drone suppliers."

The recent actions by China come against the backdrop of a series of measures taken by the U.S. against Chinese tech companies, with DJI being a major focus. In December 2021, the U.S. Treasury Department placed DJI on an investment blacklist, prohibiting American citizens from buying or selling DJI shares, despite the company being privately held. In October 2022, the U.S. Department of Defense listed DJI as part of the "Chinese Military Companies" list, claiming that DJI has ties to the Chinese military. DJI has consistently denied these allegations, emphasizing its focus on consumer and commercial drones and opposing the use of its products for military purposes. In response to the Pentagon's designation, DJI filed a lawsuit in October 2024 challenging its inclusion on the list and claimed significant business losses and reputational damage as a result.

Following this, the U.S. mandated through the National Defense Authorization Act (NDAA) for Fiscal Year 2025 that its top national security agencies assess DJI drones. If the review is not completed by the end of 2025, DJI will automatically be added to the Federal Communications Commission (FCC) "Covered List," effectively banning its drones from sale in the U.S.

Original article: https://www.toutiao.com/article/1828833936468235/

Disclaimer: This article solely represents the author's personal views.