U.S. Grants Targeted Drone Ban Exemptions, Keeps Pressure on China

14 Jan 2026

By Fang Zuwang

Chinese firms have long held a dominant grip on the American drone sector

The U.S. Federal Communications Commission (FCC) has carved out targeted exemptions from its sweeping drone import ban, allowing select foreign-manufactured drones and components to remain in the U.S. market while reinforcing its hardline stance against Chinese suppliers.

The exemptions, announced Jan. 7, refine a broader prohibition imposed in December 2025 over national security concerns. The new rules enable drone makers from allied nations to access the U.S. market, further isolating China’s dominant drone industry.

Under the adjustment, certain drone models and components will be exempt from the ban and may continue to be sold in the U.S. through Jan. 1, 2027. The FCC had previously listed all foreign-made drones on its Covered List as of Dec. 22, 2025, citing unacceptable risks to national security and the safety of U.S. personnel.

The exemptions primarily apply to two categories: models approved by the Defense Contract Management Agency’s (DCMA) Blue UAS cleared list and products meeting the Buy American Standard’s definition of Domestic End Product—requiring more than 65% of their value to be U.S.-made. The DCMA list includes more than 30 approved vendors, such as France’s Parrot, Germany’s Quantum Systems and Switzerland’s Wingtra. A list of Buy American-compliant exempt products has not yet been disclosed.

Crucially, no Chinese manufacturers appear on the exemption list. Without FCC certification, newly released Chinese drone models are barred from entering the U.S. market. Previously certified models and components, however, remain eligible for sale.

Chinese firms have long held a dominant grip on the American drone sector. As of the end of 2024, DJI Technology Co. Ltd. controlled 90% of the U.S. market, followed by Autel Robotics Co. Ltd. with 3.8%, according to August 2025 data from the American Drone Data Protection Coalition. In contrast, domestic player Skydio held just 3.1%, with Parrot accounting for 2.4%.

The move is part of a broader effort by the U.S. government to foster domestic drone production. On June 6, 2025, President Donald Trump signed an executive order titled Unleashing American Drone Dominance, aimed at boosting testing, expanding production capacity and decreasing reliance on foreign supply chains. In line with that order, the Pentagon announced in December a two-year, $1 billion investment starting in 2026 to bolster small military drone manufacturing in the U.S.

Drone manufacturers may still seek individual exemptions. The FCC said it would consider such applications through joint reviews by the Department of Defense and Department of Homeland Security to assess potential security risks. Meanwhile, the FCC is reportedly finalizing a list of approved foreign-made components — manufactured by companies such as Nvidia, ModalAI, Panasonic, Sony, Samsung and ARK Electronics — that may be used by U.S. firms to scale up domestic drone production.

Contact editor Han Wei (weihan@caixin.com)

caixinglobal.com is the English-language online news portal of Chinese financial and business news media group Caixin. Global Neighbours is authorized to reprint this article.

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