China’s grip on critical high-tech industries was on display this summer as Capitol Hill lawmakers sought to combat its dominance of the global drone market.
Senate Armed Services Committee drafters quietly dropped a provision from the massive national defense authorization bill that effectively banned Chinese-made commercial drones from the U.S. market. American farm groups and others say an immediate prohibition would be disastrous for their operations.
The House version of the 2025 National Defense Authorization Act, approved in June in the Republican-led chamber, incorporated the Countering [Chinese Communist Party] Drones Act. The two versions must be reconciled before the overall bill reaches the president’s desk.
China is by far the world’s leading exporter of drones, and a single company, Shenzhen-based Da Jiang Innovations (DJI), supplies nearly 80% of the U.S. market. American farmers, public safety agencies, police departments and large numbers of commercial drone users say the idea that the U.S. or allied countries could fill the gap in a short period is flatly unrealistic.
“We’re an American company and we support American [drone] manufacturers,” Jeremy Schneiderman, CEO of consulting firm Drone Nerds, told AgFunderNews.com. “But our job is to provide our customers with the best solution to get their spraying done. Today those solutions happen to be non-American solutions, and we would be doing a disservice to our customers by bringing them products with fewer features, that are less reliable, and are three times the price.”
Government agencies and private-sector companies use DJI drones for surveillance operations, land management, tracking wildfires and other missions. On farms, the DJI drones can apply pesticides and herbicides more effectively and with more precision than traditional crop-dusting techniques, advocates say.
DJI officials called the Senate’s apparent decision to drop the drone ban language from its version of the NDAA a “positive development” but said the fight isn’t over.
“The lawmakers driving this legislation continue to reference inaccurate and unsubstantiated allegations regarding DJI’s operations, and have amplified xenophobic narratives in a quest to support local drone manufacturers and eliminate market competition,” DJI said in a company blog.
Government links
The close links between major Chinese companies and the communist regime in Beijing have amplified U.S. fears of DJI’s market dominance. Some lawmakers argue that security concerns should trump any temporary disruption to American drone supply markets.
“Congress must use every tool at our disposal to stop Communist China’s monopolistic control over the drone market and telecommunications infrastructure and build up America’s industrial capacity,” Rep. Elise Stefanik, New York Republican, said in March when she introduced the bill.
The provision in the Senate committee’s NDAA draft requires a Defense Department task force to review counter-drone activities and develop a strategy for counter-drone technology. It also provides more funding for developing designs and manufacturing techniques for low-cost drones and an artificial intelligence program for the systems.
DJI and U.S. commercial drone users warn that the Countering CCP Drones Act blocks new DJI products from entering the U.S. market and could lead the Federal Communications Commission to revoke authorization of Chinese-made drones already in use.
“If this passes, U.S. operators would no longer be able to access new DJI drones, and their existing drone fleets may even need to be grounded,” the company said in a statement after the bill was introduced.
Supporters of the bill say the provision focuses on the market moving forward and fears of federal bans on Chinese-made drones already in use are overblown.
Proponents also cite a 2017 report by the Homeland Security Department’s investigative arm that assessed with “moderate confidence” that DJI was providing U.S. critical infrastructure and law enforcement data to Beijing. The agency “further assesse[d] with high confidence the company is selectively targeting government and privately owned entities within these sectors to expand its ability to collect and exploit sensitive U.S. data.”
“If America is to prevail in this era of great power competition, the U.S. government cannot be using drones manufactured by our adversaries,” said Rep. Robert Wittman, Virginia Republican.
The legislation would add DJI to an FCC “covered list,” effectively blocking the company’s drones from running on communications infrastructure in the U.S.
Drones and decoupling
The clash provides a window into the intensifying debate over whether and how to “decouple” or “de-risk” the American and Chinese economies. The two nations are engaged in a fierce economic and military rivalry but annually trade hundreds of billions of dollars in goods and services.
The Trump and Biden administrations have moved to curb or prevent Chinese companies in telecommunications, computer chips, electric vehicles and other cutting-edge technologies from having unfettered access to the U.S. market.
DJI argues it is the market leader not because of its government’s clout or financial backing but because it created the commercial and consumer drone segment with the 2013 release of its DJI Phantom model.
“Since then, we have helped spur the emergence of today’s vibrant U.S. drone ecosystem and have invested heavily in robust safety and security initiatives along the way,” the company said. “This is why operators continue to rely on our products today.”
Public safety agencies that rely on drones have contacted the Senate Armed Services Committee to oppose the Chinese drone restrictions. They say the act would compromise their ability to respond to emergencies.
A statement by advocacy groups, including the Airborne Public Safety Association and the Law Enforcement Drone Association, said relying on “unproven alternatives” to established Chinese drone technology would be impractical and dangerous.
“Simply put, we have not reached parity with China’s drone technology,” the groups said.
U.S. agricultural interests were so concerned about a ban or near ban on Chinese drones that several rival companies formed a coalition to lobby Congress.
Critics of the drones accused DJI of collecting vast amounts of sensitive data, including high-resolution images of critical U.S. infrastructure and facial recognition technology. The company insists its drones don’t collect photos or videos by default.
Some analysts consider DJI a security threat despite the popularity of its drones in the consumer and commercial sectors. Irina Tsukerman, a New York-based geopolitical analyst, said intelligence reports point to a “high possibility” that Chinese technology in drones and other types of technology could be used for espionage.
“Collection of private and public data could assist Chinese efforts in achieving technological and military dominance against the U.S. and could also be used to target American citizens and industries in other areas,” she told The Associated Press.
It wasn’t clear when the House and Senate versions of the 2025 NDAA would be reconciled. Before negotiations can begin, the full Senate must vote on the Armed Services Committee draft.
Chinese officials appear to be enjoying the Americans’ dilemma.
“I believe the [Senate’s] action wasn’t merely a goodwill gesture; rather, it reflects the reality that there hasn’t been a suitable alternative found in the realm of drones to replace Chinese products,” Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, recently told the government-linked Global Times news website.
• Mike Glenn can be reached at mglenn@washingtontimes.com.
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