“This is an attempt to eliminate the leading American drone company and deepen the world’s dependence on Chinese drone suppliers,” Skydio CEO Adam Bry said in a letter to customers first reported by the Financial Times.

The company, which provides drones to Ukraine’s military and Taiwan’s National Fire Agency, manufactures its products in the United States but still relies on a global supply chain for many of its components; one of the most critical components, batteries, are still sourced in China. As a result of the sanctions, which bar Chinese companies from doing business with Skydio, customers will be limited to one battery per drone, Skydio told customers.