Drone and Polysilicon Imports the Target of New National Security Probes

New national security investigations have been opened into the import of drones and drone components, and polysilicon and its derivatives, which are used in making solar panels and semiconductors, the U.S. Commerce Department announced on Monday.

The probes were opened by Commerce Secretary Howard Lutnick on July 1 under Section 232 of the Trade Expansion Act of 1962, posted on the Federal Register by the department’s Bureau of Industry and Security.

Under Section 232, the president has the authority to intervene in imports if he determines them to be a threat to national security.

The public has 21 days to comment, after which the commerce secretary has up to 270 days to report on the probes to the president.

According to the probes, the department is particularly interested in the role of foreign supply chains in supporting domestic supply and the feasibility of reducing U.S. reliance on imports. Among other issues, it will also review the risks associated with the concentration of U.S. imports in a small number of suppliers or foreign nations, the impact of foreign government subsidies and predatory trade practices, and the “potential for foreign nations and companies to weaponize their control over supplies.”

The second probe into imports of polysilicon will also inform the president on current and projected domestic demand, and any artificial suppression in polysilicon prices due to state-sponsored overproduction.

The Association for Uncrewed Vehicle Systems International (AUVSI) said it supported the drone probe that will review supply chain concentration, domestic production capacity, and the role of foreign subsidies and pricing practices.

“The dependence on adversary-manufactured systems that are dumped in the U.S. below market value due to foreign government subsidies has also stifled the growth of a secure American drone industrial base, undercutting innovation, and forcing U.S. manufacturers to compete on an uneven playing field,” AUVSI CEO Michael Robbins said.

Washington has increasingly cracked down on China-made drones over the last few years. U.S.-sanctioned DJI, the world’s and China’s largest drone manufacturer, sells more than half of all U.S. commercial drones.

In December, then-President Joe Biden signed legislation that could eventually ban DJI and Autel from selling new drone models in the United States.

In January, the Commerce Department under Biden said it was considering rules to restrict or ban Chinese drones in the U.S., citing national security concerns.

President Donald Trump signed an executive order last month aimed at boosting the U.S. drone industry.

The Trump administration has also opened numerous national security investigations into other critical imports, including commercial aircraft, jet engines and parts, medium-duty and heavy-duty trucks and related parts, semiconductors, and pharmaceuticals.

Reuters contributed to this report.