In a move that has sent shockwaves through the tech industry, Skydio, the largest drone manufacturer in the United States, has been hit with sanctions by China, crippling its supply chain and leaving customers facing a battery shortage. The company, which provides drones to Ukraine's military and Taiwan's National Fire Agency, relies on a global supply chain for components, including batteries sourced from China.According to a letter to customers, Skydio CEO Adam Bry attributed the sanctions to an attempt by the Chinese government to "eliminate the leading American drone company and deepen the world's dependence on Chinese drone suppliers." The sanctions, imposed on October 10, bar Chinese companies from doing business with Skydio, limiting customers to one battery per drone.While Skydio has a substantial stock of batteries on hand, it doesn't anticipate new sources coming online until spring next year. To mitigate the impact, the company is extending software licenses, warranties, and support terms for affected orders. Skydio has sought help from the Biden administration and Taiwan's vice president Hsiao Bi-khim to navigate the crisis.This development highlights the vulnerabilities of the US supply chain and the ongoing tech rivalry between the US and China. The incident is a clarion call for the drone industry, with Bry stating that "this action makes clear that the Chinese government will use supply chains as a weapon to advance their interests over ours." The move also comes on the heels of a lawsuit filed by DJI, the world's largest drone maker, against the US government over being designated a "Chinese military company."