The U.S. Department of Commerce took the first step to restrict or ban outright the most popular drones currently in use by professional operators, first responders, and consumers, targeting China's entrenched dominance of the small uncrewed aircraft systems market.
An advance notice of proposed rulemaking published by the Commerce Department's Bureau of Industry and Security (BIS) on January 3 seeks public input on a wide range of questions regarding the technology.
The development was quickly supported by the Virginia-based Association for Uncrewed Vehicle Systems International, which echoed the statements of federal officials, and pledged to supply detailed comments ahead of the March 4 deadline.
"The security risks posed by PRC drones in the U.S. are well-understood by the Department of Commerce and other U.S. government agencies, which have issued many warnings about threats to our national security," said AUVSI President and CEO Michael Robbins. "The time has come for the U.S. to take reasonable steps to end reliance on unsecure, subsidized technologies from PRC companies and to invest in U.S. and allied products and support security and fair market competition."
Robbins' statement included a link to an AUVSI Partnership for Drone Competitiveness white paper that answers many of the questions raised in the rulemaking document, and makes a detailed case for tariffs and import restrictions to reverse years of market dominance by China, a "flood of inexpensive drones into the U.S. market" that has resulted in systems made in China accounting for 90 percent of consumer drones, 70 percent of industrial systems, and 92 percent of the systems used by first responders. Most of that market share is controlled by Da Jiang Innovations, or DJI, based in Shenzhen, China. AUVSI noted a 2022 investigation by The Washington Post revealed significant investment in DJI by firms associated with the government of China.
The Department of Defense has restricted the procurement and use of drones made by DJI since 2017. Despite ongoing concerns about data security and supply chain control by a potential adversary, the relatively low cost and robust capabilities of drones made by DJI and Autel Robotics, another firm based in China, have made them the only realistic option available for local and state governments supporting public safety and other missions.
The Northern Plains UAS Test Site posted a fact sheet January 7 that notes a recent survey found more than 90 percent (105 of 116) of drones used by state agencies for public safety, research, and resource management (excluding university systems) were made in China, and proposing a Drone Replacement Program to help agencies transition to domestic systems, which are significantly more expensive. A DJI Matrice 4 with thermal imaging capability, among other sensors, was announced January 8 with a retail price of $7,299 including various accessories. "U.S.-made drones, particularly those on the Blue UAS Cleared List, are significantly more expensive, often ranging from $30,000 to $50,000 per unit depending on the payload," the North Dakota test facility noted in its fact sheet.
While U.S. drone makers have been unable to match the prices and capabilities of their rivals in China, the prospect of a federal ban provoked optimism that could soon change. Aviation Week reported that Red Cat, a producer of small, uncrewed aircraft for military missions based in Puerto Rico, estimates that banning DJI and Autel drones would open up a $975 million domestic market. The company, which reported $4.3 million in revenue for its most recent quarter, expects that to increase significantly in 2025, with projections ranging between $80 million and $120 million.