Drone makers looking to steer clear of China fear Beijing’s Wrath
Subscribe to enjoy similar stories. China dominates the global market for the small, inexpensive drones that have transformed the world’s battlefields—and Beijing hasn’t been shy about keeping the industry under its thumb. For U.S.
companies, dependence on China has become untenable, particularly as Beijing shows it is willing to cut off their access to essential supplies. In Taiwan, that spells opportunity. Vice Premier Cheng Li-chiun, who heads a government program to develop the island’s drone sector, said in a recent interview that the development of a “democratic supply chain" starring Taiwan is an inevitability.
However, recent examples of Beijing punishing companies for their ties to Taiwan have made U.S. businesses cautious in their efforts to avoid China in the production of drones, an industry where commercial ambitions and national security intersect. American companies also worry they will find themselves in the crossfire of any rising tensions between the U.S.
and China after President-elect Donald Trump takes office. “It’s not just let’s swap out of China and go to Taiwan," said Mike Sims, co-founder and chief executive of U.S. startup Empirium, a marketplace that helps companies including drone makers find China-free parts and services.
“It’s essentially just a delicate business environment." The delicacy of working with Taiwan is a challenge to Taiwan’s aspirations to become a powerhouse drone-parts supplier and build a drone army to defend itself against a potential invasion by China, which claims the island as its own. U.S. drone maker Skydio experienced the perils of relying on Chinese supply in October, when Beijing blacklisted the company.
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