US Moves To Shut China Out Of Drone Supply Chain To Safeguard National Security Interests

The Biden administration is weighing a new rule aimed at excluding China from the drone supply chain, marking another step in the growing trade and technology separation between the United States and China.

The Bureau of Industry and Security (BIS) under the US Department of Commerce announced on Thursday (2 January) its plan to gather public feedback until 4 March on a proposed rule addressing risks linked to China and Russia over the information and communication technology and services (ICTS) integral in the supply chain for unmanned aircraft systems (UAS), or drones.

This initiative follows Beijing’s announcement of export restrictions on 28 US companies, including major defence contractors such as Raytheon, Boeing, and Lockheed Martin, citing the need to “safeguard national security and interests.”

“Acute threats” from China and Russia may “offer our adversaries the ability to remotely access and manipulate these devices, exposing sensitive US data”, the Commerce Department said in a statement, SCMP reported.

The advance notice of proposed rulemaking, a preliminary step in the federal rule making process, indicated that the BIS is exploring potential mitigation strategies "that, if adopted, would allow UAS market participants to engage in transactions that would otherwise pose undue or unacceptable risks”.

The public has 60 days to submit comments, including national security risks linked to certain ICTS transactions involving drones, threats posed by foreign adversaries, and the potential economic impact of the proposed regulations on affected entities.

US Commerce Secretary Gina Raimondo emphasised the importance of securing the unmanned aircraft systems supply chain, describing it as “critical” for protecting national security, without directly naming China or Russia.

The notice of the proposed rule “is an essential step in protecting the United States from vulnerabilities posed by foreign entities”, she said.

Alan Estevez, an undersecretary for industry and security who heads the BIS, noted that the Commerce Department is striving to “proactively understand – and most effectively address – vulnerabilities in the commercial drone market.”

The Pentagon designated DJI, the world’s largest commercial drone manufacturer and a Chinese company, as a national security threat in 2021, barring US government agencies from using its products.

In December, President Biden signed the 2025 National Defense Authorisation Act, which has a section requiring DJI to address and dispel allegations of data leaking during an official risk assessment review in the next year.

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