US Moves to Secure Supply Chain for Drones as Chinese Devices Remain Under Scrutiny

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The Commerce Department announced on Jan. 2 that itโ€™s considering a new regulation aimed at safeguarding the supply chain for drones from U.S. adversaries, particularly communist China.

The Departmentโ€™s Bureau of Industry and Security said in a statement that the proposed rule outlines how the involvement of foreign adversaries in drone supply chainsโ€”especially the โ€œacute threatsโ€ posed by China and Russiaโ€”could allow foreign adversaries to โ€œremotely access and manipulate these devices, exposing sensitive U.S. data.โ€

The agency is seeking public feedback by March 4 on several issues, including the national security risks associated with certain drone technologies and the threat level posed by different adversaries.

โ€œSecuring the unmanned aircraft systems technology supply chain is critical to safeguarding our national security,โ€ U.S. Secretary of Commerce Gina Raimondo said in the statement, calling the proposed rulemaking notice โ€œan essential step in protecting the United States from vulnerabilities posed by foreign entities.โ€

The Commerce Departmentโ€™s announcement comes amid growing scrutiny of the flying devices made in China, particularly those produced by DJI, the worldโ€™s leading manufacturer of commercial drones, which controls approximately 80 percent of the U.S. market. In March 2024, DJI opened a flagship store on Fifth Avenue in Manhattan, signaling its expansion in the U.S. market.

A joint report published in January 2024 by the FBI and Cybersecurity and Infrastructure Security Agency warned of โ€œa significant riskโ€ to U.S. national security posed by drones manufactured in China. Central to these concerns are Chinese regulations and laws. The 2017 National Intelligence Law in China, for example, compels individuals and companies to cooperate with authorities of the Chinese regime in their intelligence work, such as turning over data that has been collected both inside and outside the country.

Last month, President Joe Biden signed a defense authorization bill that includes a provision potentially barring products of DJI, as well as its Chinese rival Autel Robotics, from entering the United States. It directed unspecific national security agencies to determine within a year whether the models manufactured by two Chinese drone makers pose โ€œan unacceptable risk to the national security of the United States.โ€

Byย Dorothy Li

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