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US-China trade war
EconomyGlobal Economy

‘Bad policy’: China’s drone makers to shrug off US ban, analysts say

The addition of foreign drone makers, including those from China, to a US trade blacklist is unlikely to heat up relations, observers said

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A vendor flies a drone during the Aero Asia 2025 expo in Zhuhai, Guangdong province. Photo: AFP
Ji Siqiin BeijingandKandy Wongin Hong Kong
Though it did not come as a surprise, the US’ formal ban on the sale of new drones produced by China marks a “milestone” in the two countries’ strategic competition and technological decoupling, analysts said, with their rivalry continuing across numerous fields despite the temporary trade truce agreed between their leaders in October.
Washington’s telecommunications regulator said on Monday that it is adding all foreign producers of drones and critical components – including those made by Shenzhen-based DJI, the world’s largest drone manufacturer – to a list of entities determined to pose “unacceptable risks” to national security.
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Addition to the Federal Communications Commission (FCC)’s “covered list” means that Chinese drone makers – which hold a dominant position in the global supply chain – will not be able to obtain approvals to sell new drone models or components in the US.

Beijing responded to move on Tuesday, with its Commerce Ministry objecting in a statement to what it called a “typical measure to distort the market and an action of unilateral bully”.

For the companies affected and their governments, the move does not come as an unexpected tightening, but rather a predictable step following through on earlier campaign rhetoric, executive orders and pieces of legislation, analysts said.

Most notably, they added, the measure is expected to have an impact on industrial layout.

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“It marks a new phase, where strategic competition between the two nations in key technology sectors is intensifying,” said Wang Dan, China director for Eurasia Group. For China’s drone firms, she added, this means losing a very large market, though such a loss was anticipated.

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