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US Commerce Department Withdraws Plan to Restrict Chinese-Made Drones

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The U.S. Commerce Department said on Friday it has dropped plans to impose new restrictions on Chinese-made drones aimed at addressing national security concerns, stepping back from a proposal that followed an earlier crackdown on passenger cars and trucks.

The decision comes after the Federal Communications Commission last month barred imports of new models of foreign-made drones and critical components on national security grounds, including products from China’s DJI and Autel. The FCC said this week it would exempt some non-Chinese drones from those restrictions.

The Commerce Department had said in September that it planned to issue rules that could restrict or potentially block imports of Chinese drones due to concerns over information and communications technology supply chains. The proposal was sent to the White House for review on October 8, but was formally withdrawn on Thursday, according to a government website posting released on Friday.

Under the FCC’s current measures, Chinese drone manufacturers cannot obtain the approvals needed to sell new drone models or key components in the United States. However, the rules do not ban the import, sale or use of existing drone models previously authorized, nor do they affect drones already purchased by users.

Records posted online show that the White House and the Commerce Department discussed the drone proposal through December 19 and met with DJI officials on December 11. During those discussions, DJI argued that blanket restrictions on drones manufactured in China would be “unnecessary, conceptually flawed, and extremely harmful to U.S. stakeholders.”

The withdrawal appears to be linked to a broader pause in actions targeting China ahead of a planned meeting in April between U.S. President Donald Trump and Chinese President Xi Jinping, according to a government official briefed on the matter.

The Commerce Department had previously warned that threats from China and Russia could allow adversaries to remotely access or manipulate drone systems, potentially exposing sensitive U.S. data. It had also been considering restrictions on key drone systems such as onboard computers, communications equipment, flight control systems, operating software and data storage — measures that some experts said could amount to an effective ban on Chinese drones.

Chinese imports account for the majority of commercial drone sales in the United States, with DJI alone representing more than half of the market. Neither the Commerce Department nor DJI immediately responded to requests for comment.

US Considers Potential Rules to Restrict or Bar Chinese Drones

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The U.S. Commerce Department is exploring new rules that could restrict or ban Chinese-made drones in the United States, citing national security concerns. The department announced on Thursday that it is considering measures to safeguard the U.S. drone supply chain, emphasizing that threats from China and Russia could allow adversaries to remotely access and manipulate these devices, thereby compromising sensitive U.S. data.

China dominates the U.S. commercial drone market, accounting for the majority of sales. In response to these national security concerns, the Commerce Department is seeking public comments on potential rules, with a deadline set for March 4. The proposed regulations could mirror those applied to Chinese vehicles, which may face similar restrictions or bans due to concerns over foreign-made equipment, chips, and software embedded in drones.

Commerce Secretary Gina Raimondo previously indicated that the department could impose restrictions akin to those that would effectively bar Chinese vehicles from U.S. markets. The focus would primarily be on drones containing Chinese or Russian-made components. Raimondo hopes to finalize the regulations on Chinese vehicles by January 20, coinciding with the inauguration of President-elect Donald Trump.

This move follows a series of actions taken by the U.S. government over the past year to address concerns about Chinese drones. Last month, President Joe Biden signed a law that could result in a ban on new models from China-based DJI and Autel Robotics, two of the largest drone manufacturers. Under this law, a U.S. agency must assess whether drones from these companies pose national security risks within a year. If no decision is made, DJI and Autel could be prevented from launching new products in the U.S.

DJI, the world’s largest drone maker, which accounts for more than half of all commercial drones sold in the U.S., has responded by warning that an inability to launch new products would hurt its business. The company has also taken legal action, suing the U.S. Department of Defense for designating it as a company with ties to China’s military. DJI denies these claims and has asserted that its products do not involve forced labor, despite Customs and Border Protection halting some of its drone imports under the Uyghur Forced Labor Prevention Act.

U.S. lawmakers have repeatedly expressed concerns about the potential risks posed by Chinese-made drones, citing data transmission vulnerabilities and surveillance issues. In 2019, Congress passed a law banning the Pentagon from using drones or components manufactured in China.