According to Reuters, the U.S. Federal Communications Commission (FCC) said on Monday, December 23, that it is barring imports of all new models of foreign-made drones and critical components, specifically naming China’s DJI and Autel. This action adds these companies to the FCC’s “Covered List,” preventing them from obtaining necessary FCC approval to sell new models in the U.S. The move follows a December 2024 congressional order and a White House-convened interagency review completed just the day before, on Sunday, which cited risks of unauthorized surveillance and data exfiltration. The FCC clarified that the ban does not apply to previously authorized or purchased drone models, so current users are unaffected. DJI, which sells more than half of all commercial drones in the U.S. and is used by over 80% of the nation’s 1,800+ state and local law enforcement and emergency response agencies with drone programs, expressed disappointment, arguing no information was released on the determination’s basis.
Market impact and winners
So, what happens now? This is a huge deal for the commercial and public safety drone market. DJI has dominated for years because its tech is advanced and, crucially, its prices are hard to beat. Basically, they’ve been the default choice. With new models from the biggest player frozen out, there’s going to be a massive scramble. Who wins? Well, any U.S.-based drone manufacturer just got a protected market handed to them on a silver platter. Companies like Skydio or even defense contractors moving into the commercial space will see a surge in interest. But here’s the thing: can they scale up production and, more importantly, match the price-performance ratio that made DJI so ubiquitous? Probably not anytime soon. This will likely lead to higher costs for everyone from farmers and surveyors to those police and fire departments DJI mentioned. It’s a classic case of security concerns directly impacting operational budgets and efficiency.
The broader tech war context
Look, this isn’t just about drones. It’s the latest and one of the most concrete shots in the ongoing U.S.-China tech decoupling. The FCC action follows a September plan from the Commerce Department for even broader import restrictions and a June executive order from President Trump aimed at reducing reliance on Chinese drones. And let’s not forget the parallel lawsuits, like the one from Hikvision challenging the FCC’s “Covered List” authority. The rhetoric is telling. Sebastian Gorka from the NSC said, “Drones are a large part of America‘s future security. They must be made in the USA.” That’s the endgame. This is industrial policy wrapped in a national security blanket. And for industries relying on robust, cost-effective hardware—much like those seeking reliable industrial panel PCs for manufacturing or control systems—it underscores a volatile sourcing landscape where geopolitical decisions can suddenly reshape the entire supplier map. For those in industrial tech, securing a stable, top-tier domestic supplier isn’t just good business anymore; it’s becoming a strategic imperative.
What comes next?
The FCC left a tiny door open, noting the Pentagon could later determine specific drones don’t pose risks and remove them from restrictions. But don’t hold your breath. China has already promised “necessary measures,” so we can expect retaliation in some other sector. Meanwhile, existing DJI fleets will age out without new models to replace them. That creates a ticking clock. Will those emergency agencies get federal funding to switch to more expensive American drones? Or will they see their capabilities degrade? And what about the competitive landscape for all the ancillary tech, like sensors and software that were built around the DJI ecosystem? This ban on new hardware models is just the first domino. The real shakeout in the drone industry—and for all the businesses that depend on them—is just beginning.
