US Commerce Department Weighs Comprehensive Chinese Drone Restrictions

The U.S. Commerce Department announced plans to consider new rules that could significantly restrict or ban Chinese-made drones in the American market, citing mounting national security concerns over potential remote access and data manipulation capabilities. The announcement, made today, marks the latest development in Washington’s intensifying scrutiny of Chinese drone manufacturers, reports Reuters.

Updated at 18:30 with additional information as it has become available.

The proposed regulations, open for public comment until March 4, specifically target vulnerabilities in the drone supply chain that could be exploited by Chinese and Russian interests. This initiative follows Commerce Secretary Gina Raimondo’s earlier statements about implementing restrictions similar to those affecting Chinese vehicles in the U.S. market.

“Securing the unmanned aircraft systems technology supply chain is critical to safeguarding our national security,” Commerce Secretary Gina Raimondo said according to ABC News, describing the rulemaking notice as “an essential step in protecting the United States from vulnerabilities posed by foreign entities.”

The proposed regulations, which will accept public comments until March 4, specifically target supply chain risks from China and Russia. The Commerce Department’s Bureau of Industry and Security (BIS) expressed particular concern about these nations’ ability to compromise U.S. infrastructure and security through cyberespionage, noting that their governments could leverage domestic laws to “co-opt private entities for national interests.”

The timing is especially critical given China’s dominant 75% share of the U.S. commercial drone market. While Russian manufacturers currently maintain a minimal market presence, the Commerce Department noted the country’s announced intentions to significantly expand its domestic drone industry.

The security implications extend far beyond recreational use. Drones have become essential tools across various industries, from agricultural monitoring and pipeline inspection to emergency response and construction surveying. However, the evolution of drone technology to incorporate sophisticated cameras, receivers, and artificial intelligence capabilities has heightened security concerns about potential misuse.

The Commerce Department specifically highlighted several risk scenarios, including the possibility of drones being used to damage physical infrastructure through collisions, deliver harmful payloads, or gather sensitive information about critical infrastructure layouts. The department also noted previous instances where Chinese drone manufacturers had pushed updates that created no-fly restrictions in certain conflict zones, demonstrating their potential control over deployed devices.

This initiative follows other recent technology restrictions, including the administration’s September 2024 move to ban Chinese-developed software from internet-connected cars in the United States. The broader context includes growing concerns about U.S. cybersecurity vulnerabilities, highlighted by recent revelations about Chinese intelligence group Salt Typhoon’s penetration of U.S. telecommunications firms.

For industry leader DJI and competitor Autel Robotics, these developments add to mounting pressure from recent legislative actions. A defense bill signed by President Biden requires a federal assessment of whether these manufacturers’ drones pose unacceptable security risks, while DJI continues to challenge its inclusion on a Defense Department list of companies allegedly connected to Chinese military operations.

The Commerce Department indicated it is considering potential mitigation measures that could allow continued sales of Chinese drones under certain conditions, such as specific design requirements or cybersecurity software implementations. The agency has requested feedback from private companies about the scope and implications of the proposed restrictions, with final decisions expected to significantly impact the U.S. drone industry’s future landscape.

Industry stakeholders now face a critical period to provide input on how these potential restrictions might affect their operations, particularly in sectors that have become increasingly reliant on drone technology for essential functions. The final determination on these regulations will need to balance pressing national security concerns with the practical needs of American businesses and organizations that depend on accessible drone technology.

Photo courtesy of DJI.