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The writer is the author of ‘Chip War’
Before the holiday season, the US Federal Communications Commission made a surprising move that could significantly impact America’s drone industry. By adding all foreign-made drones and key components to its “Covered List,” effectively banning China’s DJI, the leading drone manufacturer in the industry. This decision opens up new opportunities for US drone companies and could signal a shift towards increased import restrictions in Washington’s tech competition.
The FCC, traditionally known for regulating TV content, is now playing a key role in the tech war. With the authority to ban imports of communication equipment that poses security risks, the FCC’s reach has expanded to address technology challenges posed by China.
This move by the FCC coincides with President Donald Trump’s efforts to strengthen America’s position in the drone market and reduce reliance on Chinese suppliers. However, the US still faces challenges in defense production, particularly in the wake of the Russia-Ukraine War, which exposed vulnerabilities in American drone manufacturing.
China’s dominance in the drone market, especially in key components like batteries and motors, has put US companies at a disadvantage. The scale of China’s production and market share makes it difficult for foreign competitors to keep up. Despite efforts to impose tariffs on Chinese drones, the globalized nature of supply chains has made it challenging to effectively regulate imports.
While tariffs and export controls have been used to address Chinese tech imports, the drone ban represents a more targeted approach to restricting imports. The FCC’s actions against drones demonstrate the legal power available to the US government to address national security concerns related to Chinese technology.
As Congress considers legislation to strengthen the Commerce Department’s powers in regulating imports, the US could see more targeted restrictions on Chinese equipment in various sectors. This shift towards targeted import restrictions reflects a strategic approach to addressing national security concerns without resorting to blanket tariffs.