National Defense

China Makes 100 Drones For Every One Built In US As Pentagon Scrambles To Catch Up

Wikimedia Commons/Public/David B. Gleason from Chicago, Illinois, CC BY SA 2.0

China manufactures more than 100 drones for every one produced in the United States, a staggering industrial gap the Pentagon is attempting to close with a proposed $450 million investment in American combat drone manufacturing.

Chinese companies control approximately 70% of the global consumer drone market and 90% of the American consumer market, according to congressional testimony from former Defense Innovation Unit Director Douglas Beck. Beijing’s overwhelming manufacturing advantage also carries military implications through its military-civil fusion strategy, which allows civilian technological advances to support the People’s Liberation Army, according to the State Department.

The Pentagon announced a conditional loan commitment of up to $450 million Monday to California-based drone manufacturer Neros Technologies, aiming to expand domestic production and reduce reliance on foreign components.

Neros Technologies did not immediately respond to a request for comment.

Neros will contribute another $165 million, bringing the proposed manufacturing investment to $615 million, according to the company’s announcement.

The investment comes as China maintains an enormous lead in producing inexpensive unmanned aircraft, many of which incorporate technologies adaptable for military operations.

China delivered more than 3.17 million civilian drones in 2023, supported by more than 2,300 drone research and manufacturing enterprises producing over 1,000 models, according to the Chinese government’s State Council.

China’s civilian drone industry continued expanding in 2025, reaching approximately 3.29 million registered aircraft, an increase of 51% from the previous year, according to the country’s Civil Aviation Administration.

That enormous civilian industrial base presents a significant strategic advantage for Beijing, whose military-civil fusion strategy seeks to eliminate barriers between commercial technological development and military modernization.

The strategy allows the Chinese military to acquire technologies and expertise developed by ostensibly civilian companies, universities and research programs, according to the Pentagon.

Chinese drone manufacturer DJI, one of the world’s largest commercial drone producers, was designated a Chinese military company by the Pentagon in 2022, according to the department’s official list.

DJI disputes the designation and maintains that it operates independently of the Chinese military and prohibits combat use of its products, according to a company statement.

America’s dependence on Chinese manufacturing extends beyond finished drones to the motors, batteries, electronics and other components required to assemble them.

Components manufactured outside China frequently cost three to five times as much as their Chinese equivalents, while Chinese supply-chain disruptions have already interfered with American military drone production, according to Beck’s congressional testimony.

The American military has also struggled to purchase inexpensive drones in quantities approaching those used in modern warfare.

The Pentagon planned to purchase approximately 4,000 drones in 2025, while Ukraine was producing and consuming more than 4,000 drones every day, according to the same testimony.

Defense Secretary Pete Hegseth acknowledged the problem in July 2025, warning that America’s adversaries collectively manufactured millions of inexpensive drones annually while the Pentagon lacked sufficient quantities of lethal small drones, according to the Department of War.

The Trump administration subsequently launched its Drone Dominance program, a $1.1 billion initiative intended to field hundreds of thousands of American-made attack drones by 2027, according to the Pentagon.

Neros has already received an order for 14,000 drones and explosive payloads valued at more than $100 million through the program.

The company also received an additional order for 800 drones after competing manufacturers failed to meet delivery deadlines, according to a September company announcement.

The latest financing would allow Neros to expand manufacturing of drones and critical components in the United States, with the company targeting annual production of one million drones by 2028.

However, the funding remains conditional, and the ambitious production target has not yet been achieved, according to the company’s announcement.

Even if Neros meets that target, its projected annual output would remain below the 3.17 million civilian drones China reported delivering in 2023, although the figures represent different categories of unmanned aircraft.

The financing follows President Donald Trump’s June 2025 executive order directing federal agencies to prioritize American-made drones and strengthen domestic supply chains, according to the White House.