The United States faces a significant challenge in drone manufacturing due to its heavy reliance on Chinese components. Rising tensions over Taiwan and the ongoing war in Ukraine have sharply increased the demand for unmanned systems, highlighting the urgent need for affordable, mass-scale drone production. This growing demand has exposed a critical vulnerability: American drone manufacturers depend on Chinese parts to operate.
Chinese companies dominate the global commercial drone market, holding a 90% share, with DJI leading as the top manufacturer. According to Drone Industry Insights UG, China produces the majority of essential drone components—including airframes, batteries, cameras, radios, and screens. Despite efforts to prioritize domestic production under the “America First” principle, U.S. companies remain reliant on Chinese supply chains due to a lack of viable alternatives.
The United States faces multiple years of delay to establish a manufacturing system that competes effectively despite its efforts to bring production home and work with allies. According to Josh Steinman, who served as a National Security Council supply chain advisor, the United States depends almost entirely on its main adversary for both the products and the manufacturing capabilities.
National security experts now consider this situation to be a critical issue. The Pentagon-contracted drone manufacturer Skydio, along with other American drone companies, rushes to restructure their manufacturing networks after Chinese export restrictions were implemented. The Defense Innovation Unit has reported that China possesses the ability to stop worldwide drone manufacturing for twelve months through export restrictions.
Trent Emeneker from the Pentagon described this situation as exceeding industrial issues because it creates geopolitical dangers. The U.S. requires an urgent strategic initiative to develop self-sustaining drone supply chains for national defense and military preparedness given its efforts to counter Chinese influence.
