China captured 90%+ of the global non-military drone market through state subsidies and predatory pricing. American companies were systematically priced out. Every day the U.S. delays scaling domestic production is a day China solidifies that advantage. DAWG and Drone Dominance are the corrective — they must survive markup.
China / DJI Threat
DJI controls approximately 80% of the U.S. drone market. Chinese manufacturers hold over 90% of the global non-military market — built on tens of billions in state subsidies, predatory pricing, and state-directed supply chains. The FCC Covered List makes replacement a matter of when, not if.
Blue UAS Exemption Expires 01.01.2027
The FCC's January 7, 2026 action exempted Blue UAS-cleared platforms (including PDW's C100) and Buy American products from the Covered List through January 1, 2027 only. After that date, the exemption must be renewed — or Blue UAS platforms could face the same restrictions as foreign drones. Active engagement with FCC and DoW is required well before Q4 2026.
"China used state subsidies in the tens of billions of dollars, predatory pricing, and state-directed control of supply chains to capture more than 90% of the global non-military small drone market. American drone companies were essentially forced out."
- FY2020 NDAA §848
DoW prohibited from procuring Chinese-manufactured UAS.
- FY2025 NDAA §1709
DJI and Autel banned from selling in the United States.
- Oct 2025
Sen. Rick Scott urges FCC crackdown on Chinese drone manufacturers.
- Dec 22, 2025
FCC Covered List — all foreign UAS and critical components barred from new equipment authorizations. The most significant market-clearing event in the industry's history.
- Jan 7, 2026
FCC exempts Blue UAS-cleared platforms (incl. PDW C100) and Buy American products from the Covered List — through January 1, 2027 only.
- Feb 3, 2026
DoW announces 25 vendors for Gauntlet I, including PDW.
- March 2026
Gauntlet I results: 11 winners. PDW commended by DDP for mass-production capacity; qualifies for Gauntlet II.
- Ongoing 2026
Autel challenging FCC Covered List decision in court. Regulatory uncertainty for competitors continues.
- ⚠️ Jan 1, 2027
FCC Blue UAS exemption EXPIRES. If not renewed, C100 could face the same restrictions as foreign drones.
Rebuilding American drone manufacturing creates high-paying engineering and production jobs and reduces dependence on Chinese supply chains. PDW's Huntsville factory is exactly the domestic production base Congress has been asking for. 18,000+ agencies needing DJI replacements is a bipartisan constituency.