U.S. Tightens Rules on Chinese Drones Amid National Security Concerns

The buzzing sound overhead might be more than just a hobbyist’s toy. As Chinese-manufactured drones dominate global markets, U.S. officials are advancing new restrictions to protect critical infrastructure from potential espionage and cyber threats.

The Regulatory Framework: How BIS Rulemaking Targets Foreign Tech

At July’s AUVSI Drone and AAM Policy Symposium in Washington D.C., Elizabeth Cannon, Executive Director of the Commerce Department’s Office of Information and Communications Technology and Services (OICTS), outlined plans to curb risks from foreign drones. Under Executive Order 13873 signed in 2019, the Bureau of Industry and Security (BIS) can prohibit transactions involving information and communications technology (ICTS) from “foreign adversaries” like China or Russia. Cannon emphasized this isn’t a blanket ban but a surgical approach: “We’re focused on specific technologies that pose real threats,” she stated during a fireside chat with AUVSI CEO Michael Robbins. The strategy mirrors recent connected vehicle regulations, where the OICTS targeted data exploitation and remote-control vulnerabilities after industry consultations.

Why Chinese Drones Are a Focus

Chinese drones, particularly DJI models, control over 70% of the global commercial market according to 2023 Drone Industry Insights. Cannon acknowledged enforcement complexities, noting the $800 de minimis threshold allows small drones to enter the U.S. without scrutiny. To address this, OICTS is considering two tactics:

• Narrowed Scope: Restricting only high-risk components (e.g., communication systems with security flaws)
• Phased Timelines: Allowing alternative suppliers like U.S.-based Skydio to scale production
  Robbins raised concerns about “whack-a-mole” evasion tactics, where manufacturers rebrand to bypass bans. Cannon confirmed regulators are developing hardware/software verification methods to identify obscured links to restricted Chinese entities.

Prioritizing Critical Infrastructure

Larger drones used in energy, transportation, and public safety will likely face earlier restrictions. “These systems don’t benefit from de minimis exemptions and are traceable through formal channels,” Cannon explained. However, she warned that hobbyist drones aren’t risk-free, citing documented incidents of data leakage to foreign servers in a 2022 Department of Homeland Security advisory.

Interagency Coordination and Next Steps

Nine federal agencies are collaborating under a 90-day executive order deadline to align drone policies. Cannon confirmed this effort will complement the ongoing Section 232 investigation into national security threats from Chinese drones. Industry stakeholders will have additional comment opportunities, even if rules advance via an Interim Final Rule (IFR) for faster implementation. Public feedback from a 2023 Commerce Department NPRM on Chinese drones will inform final regulations expected by late 2024.

As drone technology evolves from recreational gadgets to critical infrastructure tools, U.S. regulators are balancing innovation with security. The coming restrictions on Chinese drones signal a pivotal shift toward domestic supply chains—making vigilance and compliance essential for operators nationwide.

Must Know

Q: Which Chinese drones are affected by new U.S. rules?
A: Regulations target drones with components posing national security risks, particularly those used in critical infrastructure. Larger commercial models (e.g., agricultural or industrial drones) face earlier scrutiny than consumer toys.

Q: Can I still fly my Chinese-made drone?
A: Current rules don’t ban ownership, but future restrictions may limit software updates or data-sharing for specific models. Monitor BIS guidelines for compliance deadlines.

Q: How will regulators identify banned drones?
A: OICTS is developing hardware/software markers to detect obscured links to restricted Chinese manufacturers, even if products are rebranded.

Q: Are U.S.-made drone alternatives available?
A: Yes. Companies like Skydio and Brinc produce drones for enterprise and public safety use, though prices are typically higher than Chinese equivalents.

Q: When will final rules take effect?
A: An Interim Final Rule could emerge within 90 days, but phased implementation may extend restrictions into 2025 to allow industry adaptation.