Commerce Department Issues NPRM to Limit Use of Chinese-Made Drones and Components

Proposed Rule Seeks to Secure Drone Supply Chains and Mitigate National Security Risks

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has announced an advance notice of proposed rulemaking (ANPRM) aimed at enhancing the security of unmanned aircraft systems (UAS) supply chains. According to the U.S. Department of Commerce, the proposal seeks to address potential vulnerabilities arising from foreign adversaries’ involvement, particularly from China and Russia.

The ANPRM outlines several areas where public input is needed to guide the potential rule, which falls under Executive Order 13873, “Securing the Information and Communications Technology and Services Supply Chain.” This executive order empowers the Commerce Department to regulate or prohibit transactions involving ICTS linked to foreign adversaries when such transactions pose risks to national security or critical infrastructure.

Addressing National Security Risks

The Commerce Department emphasized the urgency of safeguarding UAS supply chains. “Securing the unmanned aircraft systems technology supply chain is critical to safeguarding our national security. This ANPRM is an essential step in protecting the United States from vulnerabilities posed by foreign entities,” stated U.S. Secretary of Commerce Gina Raimondo.

Under Secretary for Industry and Security Alan F. Estevez added, “The Department of Commerce continues to assess the national security risks posed by foreign adversary involvement in our critical technology supply chains. We welcome public comment on this ANPRM as we seek to proactively understand – and most effectively address – these vulnerabilities in the commercial drone market.”

Elizabeth Cannon, Executive Director of the Office of Information and Communications Technology and Services (OICTS), highlighted the significance of the proposed measures. “This ANPRM marks a crucial step towards safeguarding the ICTS supply chain against foreign adversarial influences. BIS’s ongoing work will ensure a resilient infrastructure for UAS and protect critical U.S. technologies and data,” she said.

Potential Impact of the Rule

If the proposed rule is implemented, it could reshape the UAS industry in the United States by limiting or prohibiting the use of drones or their components that are developed, manufactured, or supplied by foreign adversaries such as China and Russia. Specific impacts include:

• Increased Security: Proponents of the rule say that enhanced regulations would reduce the risk of data breaches, remote manipulation, and cyber vulnerabilities associated with foreign ICTS components in UAS.
• Supply Chain Overhaul: U.S. drone manufacturers may need to identify alternative suppliers for critical components, leading to potential supply chain disruptions in the short term.
• Economic Implications: Opponents of limiting the use of Chinese-manufactured drone technology say that businesses relying on affordable, foreign-manufactured drones might face higher costs or limited availability of compliant products, affecting industries such as agriculture, energy, and emergency response.
• Market Shift: By discouraging the use of Chinese-manufactured drones, the rule could promote domestic manufacturing and encourage investment in U.S.-based drone technology.

The ANPRM also suggests potential mechanisms for approving certain transactions if adequate risk mitigation measures are in place, ensuring flexibility for businesses while safeguarding national security.

Ongoing Efforts to Limit Chinese-Manufactured Drones

This proposal is the latest in a series of U.S. government actions aimed at reducing the reliance on Chinese-manufactured drones. Chinese companies, such as DJI, currently dominate the consumer drone market in the U.S., controlling an estimated 75% of the market. This dominance has raised national security concerns due to China’s legal framework, which can compel private companies to cooperate with government intelligence operations.

In recent years, various government agencies, including the Department of Defense and the Department of the Interior, have restricted the use of Chinese-manufactured drones. Most recently, the National Defense Authorization Act (NDAA) called for a security review of Chinese drones, potentially leading to limiting their use of FCC bandwidth.

The Commerce Department’s ANPRM builds on these efforts by addressing vulnerabilities at the intersection of drone technology and critical ICTS systems.

Public Input Requested

The ANPRM invites feedback on areas such as the economic impact of proposed regulations and potential processes for mitigating risks without halting all transactions involving foreign ICTS components. BIS is particularly interested in how foreign adversaries could exploit UAS vulnerabilities for malicious purposes, such as data exfiltration or unauthorized control.

The deadline for public comments is March 4, 2025, and comments can be submitted through the Federal Rulemaking Portal at regulations.gov or via email at UnmannedAircraftSystems@bis.doc.gov.

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Read more:

• FY 2025 NDAA Conference Text: What Happened with the “Countering CCP Drones Act”
• FY25 NDAA: A Temporary Reprieve for Chinese Drones or the Beginning of the End?
• DJI Responds, Calls for Fair Assessment in NDAA Drone Legislation