The U.S. government is considering a major step to restrict China’s involvement in the supply chain for drones, citing national security concerns. This move is part of a broader effort to reduce reliance on China for critical technology and further decouple the two economic giants in the technology and trade sectors.
Public Consultation on Proposed Rule
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced plans to solicit public opinion on a proposed rule. This rule aims to address risks posed by foreign adversaries, particularly China and Russia. In the supply chain of unmanned aircraft systems (UAS), commonly known as drones. The BIS will accept comments until March 4, allowing stakeholders to share their perspectives on potential national security threats and the economic impact of the regulations.
The proposal seeks to mitigate risks such as remote access to sensitive U.S. data and the manipulation of drone systems. Officials argue that Chinese and Russian technologies in drones could expose critical U.S. infrastructure to adversaries.
Strategic Importance of Securing Drone Technology
Drones play a significant role in surveillance, delivery, and emergency response. Their increasing integration into both commercial and military applications makes their supply chains a national security priority. According to the Commerce Department, securing this technology is vital to protecting U.S. interests.
The proposed rule is aligned with a broader U.S. strategy to safeguard critical infrastructure and digital assets. The Biden administration has intensified scrutiny of technologies sourced from China and Russia, particularly in industries with high national security stakes.
China’s Dominance in the Drone Market
China is the world leader in drone production, with companies like DJI dominating global and U.S. markets. Most commercial drones sold in the United States are manufactured in China, which has raised concerns about dependence on a foreign power.
In 2021, the Pentagon labeled DJI a national security threat, barring U.S. government agencies from using its drones. DJI responded by challenging the designation in court, arguing that its products are unfairly targeted. Despite this, U.S. lawmakers continue to push for tighter restrictions on Chinese-made drones, emphasizing the potential risks of data leaks and cyberattacks.
U.S.-China Trade and Tech Disputes Escalate
The announcement of the proposed drone restrictions comes as tensions between the U.S. and China reach new heights. Hours before the Commerce Department’s statement, Beijing announced export bans on 28 American companies, including defense giants like Boeing, Lockheed Martin, and Raytheon. This tit-for-tat escalation reflects deepening friction between the two powers over trade, technology, and security.
The Biden administration has already taken significant steps to reduce reliance on Chinese technology. Recent efforts include restrictions on Chinese semiconductors, communication systems, and now drones. These measures aim to ensure that critical industries remain secure from foreign influence.
Executive Orders and Legal Framework
The proposed drone restrictions are grounded in an executive order issued by former President Donald Trump in 2019. This order empowers the Commerce Department to investigate and address risks to U.S. national security posed by foreign entities.
Earlier, the BIS issued notices concerning connected vehicles from China and Russia, citing similar concerns. These efforts indicate a systematic approach by the U.S. to mitigate vulnerabilities in key technological sectors.
National Defense Authorisation Act and Future Actions
In December 2024, President Biden signed the 2025 National Defense Authorization Act, which includes provisions requiring Chinese companies like DJI to address allegations of data leaks. This act underscores bipartisan support for safeguarding critical U.S. technologies from foreign interference.
Looking ahead, the Biden administration will continue to strengthen supply chain security across various sectors. The proposed rule on drones is part of a broader strategy to enhance U.S. self-reliance and reduce exposure to potential threats.
Balancing Security and Innovation
The U.S. faces the challenge of balancing national security with maintaining a competitive and innovative technology sector. While reducing reliance on foreign entities is crucial, experts caution that overregulation could hinder innovation and increase costs for American businesses and consumers.
The public consultation process will help determine the best approach to secure the U.S. drone supply chain without stifling industry growth. As the March 4 deadline approaches, stakeholders will provide critical input to shape the final regulations.
The proposed rule highlights the U.S. commitment to strengthening its technological resilience. As tensions with China and Russia continue to mount, the focus on securing critical supply chains will likely remain a top priority for the Biden administration and beyond.