Drones become newest front in China-U.S. economic security fight

American startup loses battery supply chain after Beijing sanctions

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The use of drones is becoming increasingly prevalent for military and other purposes. © Reuters

SHUNSUKE AKAGI, Nikkei staff writer

WASHINGTON -- Tensions between the U.S. and China have spread to the drone industry, as American startup manufacturer Skydio -- which supplies Taiwan and Ukraine -- says its battery supply chain in China has been targeted by sanctions from Beijing.

"Right now we don't expect new [battery] sources to come online until the spring of next year," the company said in a statement released on Wednesday. It criticized the sanctions, saying "this action makes clear that the Chinese government will use supply chains as a weapon to advance their interests over ours."

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