- The United States is addressing vulnerabilities in its drone supply chain, particularly the heavy reliance on drones and drone parts from China, which could be exploited for espionage, data manipulation and undermining national security.
- The Commerce Department is considering new rules to secure the drone supply chain and is currently assessing risks and threats posed by foreign drone technologies.
- China's DJI controls approximately 80 percent of the U.S. commercial drone market, raising alarms due to China’s National Intelligence Law, which mandates companies to cooperate with state intelligence efforts, potentially compromising U.S. data.
- The U.S. government has taken steps to counter the threat, including a 2023 defense bill that may ban DJI and Autel Robotics from the U.S. market if deemed a security risk. DJI has challenged its designation as a Chinese military company in court.
On Jan. 2, the Department of Commerce announced it is considering new regulations to safeguard the United States' drone supply chain from foreign adversaries, particularly communist China.
This move comes amid mounting concerns that Chinese-made drones, which dominate the United States' commercial drone market, could be exploited by hostile regimes to spy on Americans, manipulate sensitive data and undermine U.S. sovereignty and national security.
The Commerce Department's Bureau of Industry and Security (BIS) outlined the risks in a statement, warning that foreign adversaries – especially China and Russia – could remotely access and manipulate drones, exposing critical U.S. data.
In simpler terms, this means that drones made in China could be used as tools for espionage, allowing foreign governments to gather intelligence, disrupt operations or even sabotage American infrastructure.
The proposed regulations aim to address these vulnerabilities by securing the supply chain for unmanned aircraft systems. The BIS is seeking public feedback by March 4 to better understand the national security risks associated with certain drone technologies and the varying threat levels posed by different adversaries.
Chinese dominance over global commercial drone market undermines U.S. national security
At the heart of this issue is China’s dominance in the global drone market. The majority of commercial drones sold in the U.S. are made in China, with DJI, a Shenzhen-based company, controlling approximately 80 percent of the American market.
DJI's expansion into the U.S. reached a new milestone in March 2024 when it opened a flagship store on Manhattan’s Fifth Avenue, signaling its growing influence. However, this dominance has raised alarm bells among U.S. officials and lawmakers.
A joint report by the FBI and the Cybersecurity and Infrastructure Security Agency in January 2024 highlighted the "significant risk" posed by Chinese-made drones. Central to these concerns is China’s 2017 National Intelligence Law, which mandates that Chinese companies and individuals cooperate with the regime's intelligence efforts. This means that companies like DJI could be compelled to hand over data collected by their drones, including sensitive information from U.S. users.
The U.S. government has already taken steps to counter this threat. In December 2023, President Joe Biden signed a defense authorization bill that includes a provision potentially barring DJI and its rival, Autel Robotics, from selling their products in the United States. The bill directs national security agencies to determine within a year whether these Chinese-made drones pose an “unacceptable risk” to U.S. security.
DJI has faced scrutiny before. In 2020, the Commerce Department placed the company on its "entity list," barring it from purchasing or using U.S. technology or components due to its involvement in the Chinese regime’s repression of Uyghur Muslims in Xinjiang. More recently, U.S. customs officials halted some DJI imports over forced labor concerns, though the company has dismissed these allegations as misunderstandings.
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