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US Considering Restrictions, Potential Bans on Chinese Drones

by Tradinghow
January 4, 2025
in Economy, Stock Trading
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US Considering Restrictions, Potential Bans on Chinese Drones
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The United States is considering placing new restrictions, and even potentially banning the use of Chinese drones in the country, over national security issues.

The US Commerce Department said on Thursday it was considering new rules to safeguard the supply chain for drones and seeking public comments on the matter by March 4.

Threats from China and Russia “may offer our adversaries the ability to remotely access and manipulate these devices, exposing sensitive US data,” the agency said.

 

Also on AF: China Ponders Export Curbs on Lithium Tech, EV Batteries

 

The final decision to write new rules restricting or banning Chinese drones will be made by the administration of President-elect Donald Trump, who takes over on January 20.

The agency’s statement comes after Commerce Secretary Gina Raimondo said in September that she was considering imposing restrictions on China-made drones similar to those that would effectively ban Chinese vehicles from the US.

Raimondo said her department would focus on drones with Chinese and Russian equipment, chips and software.

 

Huge American base

A potential ban on Chinese drones, such as those made by DJI Technology, could have a major impact on American consumers, many of whom have come to rely on these devices.

China accounts for the vast majority of US commercial drone sales.

According to a report by the Associated Press last month, American buyers have been using Chinese drones — often those made by DJI — for an array of operations, ranging from spraying fertilisers and mapping roads to running rescue operations and preventing crime.

One drone enthusiast told the agency: “If we ban the Chinese drones, we knock out many amazing things we do.”

Another said his project at Texas State University, that uses drones to analyse vegetation and discover buried bodies, would be “deader than a doornail” if Chinese drones are banned.

Users who spoke to AP also said they don’t see any viable alternatives to China-made drones, as US-made drones were far more expensive and lacked the extent of features offered by their Chinese counterparts.

Meanwhile, industry experts said the US government needed to focus instead on investing in the US drone-making industry so it can catch with its Chinese rivals.

 

All eyes on DJI

Still, Washington has taken a series of steps to crack down on Chinese drones over the last year.

Last month, President Joe Biden signed legislation that could ban China-based DJI and Autel Robotics from selling new drone models in the US. A unspecified US agency must determine within one year if drones from DJI or Autel Robotics pose unacceptable national security risks.

DJI, the world’s largest drone manufacturer that sells more than half of all US commercial drones, said if no agency completes the study it would prevent the company from launching new products in the US.

In September, the House of Representatives voted to bar new drones from DJI from operating in the US.

In October, DJI sued the US Defense Department for adding it to a list of companies allegedly working with Beijing’s military, saying the designation is wrong and has caused the company financial harm.

The drone-maker said US Customs and Border Protection was stopping imports of some of its drones from entering the US, citing the Uyghur Forced Labor Prevention Act. No forced labor is involved at any stage of its manufacturing, DJI said.

US lawmakers have repeatedly raised concerns that DJI drones pose data transmission, surveillance and national security risks, which the company rejects. Congress in 2019 banned the Pentagon from buying or using drones and components manufactured in China.

 

  • Reuters, with additional editing and inputs from Vishakha Saxena

 

Also read:

Chinese Hackers Breached US Treasury’s Sanctions Office: Report

Chinese Hackers Stole Treasury Documents, US Officials Say

US Looking to Ban Sales of China’s TP-Link Routers

China is Using AI to Ramp up Espionage, US Says – WSJ

US Sets New Rules to Block China, Rivals’ Access to US Data

China Testing Bigger Cargo Drones And Helicopter Taxis

More Chinese Companies Blacklisted For Uyghur Forced Labour

Italian Officials Seize Chinese Drone Parts Bound For Libya

China’s DJI Halts Drone Sales in Russia, Ukraine Over War Risks

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]

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