AUVSI Statement on China’s Sanctions Against U.S. Drone Companies

April 7, 2025

Arlington, VA – On Friday, The People’s Republic of China (PRC) added 11 leading U.S. drone manufacturers to its Ministry of Commerce “Unreliable Entity List,” citing military technology cooperation with Taiwan. The PRC also added an additional 16 companies to its export control list. The United States has no such sanctions or bans on PRC drone manufacturers, although multiple U.S. government agencies have labeled PRC drones as an unacceptable national security risk.

China’s targeting of U.S. drone companies through sanctions, export controls, and its recent ban on rare earth mineral exports to the United States pose a direct threat to global supply chain stability and the continued development of secure technologies. While the U.S. drone industry has made commendable strides toward reshoring manufacturing and sourcing components from trusted allies, these retaliatory actions expose how vulnerable that progress remains.

AUVSI’s President & CEO, Michael Robbins, noted: “The PRC’s targeting of leading U.S. drone and autonomous technology firms, including multiple AUVSI member companies, is just the latest example of why the United States must prioritize its supply chain security and resiliency, build a more robust base of domestic drone manufacturing, and strengthen partnerships with allied nations. We need immediate action from the White House and Congress to ensure the U.S. drone industry is competing on a level playing field, where U.S. innovation will drive the next generation of drone, robotic, and autonomous technologies.”

By labeling trusted U.S. companies as “unreliable entities” for alleged “military technology cooperation with Taiwan,” the PRC is targeting U.S. firms that are actively building the future of uncrewed systems in support of public safety, national security, and democratic ideals.

This includes some of the most capable and mission-driven players in the drone industry that serve first responders, warfighters, and the critical infrastructure community. AUVSI has long supported efforts to reduce the industry’s dependency on adversary-aligned platforms and components, and accelerate the growth of a secure, domestic and allied manufacturing base. Now more than ever, the United States must invest in domestic production capacity and enacting policies that strengthen our industrial base. This includes:

• Smart enabling regulations for drone operations and manufacturing,
• Accelerated investments utilizing key tools like the Defense Production Act, loan guarantees, manufacturing tax incentives, advanced market commitments, and
• Strategic partnerships, investments, and transition plans that ensure our public safety agencies, military, and critical infrastructure operators are not continually forced to rely on foreign adversaries for mission-critical systems.

Said Robbins: “This moment demands more than concern – it requires coordinated action. Government and industry must accelerate efforts to build a trusted, domestically driven drone ecosystem. AUVSI remains committed to advancing that vision by supporting policies and partnerships that reduce foreign dependency, strengthen supply chain resilience, and protect against adversarial influence.”