The journal of contemporary issues in business and government

EVALUATING THE NATIONAL SECURITY AND ECONOMIC CONSEQUENCES OF U.S. RESTRICTIONS ON FOREIGN DRONES

Naveed Hussain — 2025-05-05

This work investigates not only about the increasing use of overseas produced drones (especially of Chinese and Russian companies) in the U.S., but also the potential consequences on the national security, sectors and economic strength. The Commerce Department has restricted these drones on the grounds of spying threats, vulnerability to cyber-security risks as well as the integration of AI (Artificial Intelligence) chips inside them. These risks involve things like data exfiltration, AI model poisoning and firmware backdoors that could all impact sensitive data and national security. But the ban has also presented extensive operational and economic hardships, particularly in sectors that depend on drones, including agriculture, emergency response and infrastructure inspections. These are companies that rely on low-cost foreign drones such as DJI and this need for affordable local alternatives has hampered the fortunes for them leading to higher operational costs and inefficiencies. The paper goes on to argue that these issues prompt a consideration of an equilibrium approach to regulation. A total ban on all foreign drones may be unwise, but a more selective policy that focuses on models we know represent a risk to our national security could be used to neutralize these threats without damaging vital areas of the economy. The research also suggest that there should be investment for manufacturing of drones domestically, robust cyber security for AI managed drones and public-private partnership to promote innovation in domestic UAV sector. Doing so will allow the U.S. government to protect national security while minimizing economic dislocation and maintaining forward momentum in areas that rely on drone technology.

STRATEGIC BLINDNESS: HOW BANNING TECHNOLOGY WITHOUT ALTERNATIVES INVITES ECONOMIC RECESSION AND SOVEREIGNTY RISKS

Shafiq Kharal — 2025-05-06

This paper points out the strategic, economic, and sovereignty risks of banning foreign-made technology without an adequate domestic alternative. The thesis, informed by the research of Hassan Rasheed Siddiqui, an authority on aviation law and policy, is that such bans, usually predicated on national security considerations, inevitably result in unintended consequences, presenting them open to economic recession, technological dependence and political coercion. The study cites three key risks associated with banning foreign technologies: price inflation because of monopolistic behavior, supply chain delays based on failing to find domestic masters of the technology previously supplied by foreigners, and system disruption from the failure of locked-in legacy systems that were dependent on the banned technologies. This study underlines the significance of proactive technology transition policies and mechanisms, such as the promotion of domestic innovation, the formulation of legislation-based technology shifting roadmaps, and public and industry education in handling these sorts of transitions. Furthermore, the paper provides specific policy suggestions for how to manage the risks associated with such foreign technology bans. Then it goes on with: “The recommended measures include the development of a neutral, sovereign tech production, the setting up of strategic tech-buffer reserves, the introduction of appropriate regulatory measures and legislative precautions against tech blackmail. Emphasizing long-term resilience, national sovereignty and innovation, the research brings to the fore the need for governments act strategically when planning for technology transitions, so as to avoid the inadvertent creation of points of technological and economic weakness.