China imposes sanctions on Skydio, disrupting US drone supply chain

China has imposed sanctions on Skydio, the largest drone maker in the U.S., preventing it from sourcing parts from Chinese suppliers. This action is seen as retaliation for U.S. drone sales to Taiwan and has disrupted Skydio's supply chain. Skydio's CEO stated that the sanctions highlight China's use of supply chains as a weapon against American companies. The company primarily sources its components from Vietnam, with a small percentage from Hong Kong and China. The sanctions have raised concerns about the vulnerability of U.S. companies reliant on Chinese suppliers. Officials suggest this situation may accelerate efforts to diversify supply chains away from China.