US considers rule that could restrict or ban drones with Chinese tech

US President Joe Biden’s administration is considering proposing a rule to cut China out of the drone supply chain, the latest move in the escalating trade and tech decoupling between the world’s two largest economies.

The US Department of Commerce’s Bureau of Industry and Security (BIS) said on Thursday that it was soliciting public opinion by March 4 on a rule regarding risks associated with China and Russia over the information and communication technology and services (ICTS) integral in the supply chain for unmanned aircraft systems (UAS), or drones.

The move came hours after Beijing announced export bans on 28 American companies, including leading manufacturers of defence systems like Raytheon, Boeing and Lockheed Martin, to an export control list to “safeguard national security and interests”.

“Acute threats” from China and Russia may “offer our adversaries the ability to remotely access and manipulate these devices, exposing sensitive US data”, the Commerce Department said in a statement.

According to the advance notice of proposed rule making – a preliminary step in the federal rule making process – the BIS was “also considering whether there are mitigation measures that, if adopted, would allow UAS market participants to engage in transactions that would otherwise pose undue or unacceptable risks”.

The public has 60 days to submit comments, including national security risks linked to certain ICTS transactions involving drones, threats posed by foreign adversaries, and the potential economic impact of the proposed regulations on affected entities.