This proposed action just sounds like more election year grandstanding that will reduce American consumer's freedom to choose while having little practical effect on actually improving any national security that matters or can't otherwise be worked around. If it becomes law, the most likely outcome is that DJI becomes a US-based and owned company to whatever extent the law requires. The enterprise itself is too valuable to just shut down, so it's basically a government forced transfer of an asset. Being a forced sale, DJI's valuation will be substantially depressed. This will harm the Chinese entrepreneurs who started DJI as well as their investors but only indirectly cause relatively inconsequential damage to the overall Chinese stock market. To whatever extent Chinese intelligence is harvesting DJI drone data, there are other ways they can get that data ranging from LEO satellites to hiding imaging/sensor packages on any of the thousands of China-based passenger, cargo and private jets that overfly the U.S. weekly. Thus, any actual net improvement in national security posture is relatively minor at best.

It's frustrating because even if we grant there's significant national security harm happening from DJI drone data, there are far more direct and effective ways to mitigate any such harm. For example, mandate that consumer drone data acquired in the U.S. cannot be stored in or transit China without a license. At the same time reverse the new FAA requirement for drone manufacturers to install software remote kill switches on consumer drones. While the idea may have sounded vaguely appealing in concept, in practice it's been a huge hassle for American consumers while being ineffective as a security measure because it's so easy for bad actors to work around. Thus, the only remaining effect is the unintended consequence that it forces U.S. consumers by law to accept the anti-feature of drone makers being able to kill American's drones at will - including foreign owned companies.