After the move to ban TikTok in the US, Chinese drone manufacturer, DJI, could become the next target of the US federal government, as part of its crackdown on Chinese tech firms.
The House Energy and Commerce Committee advanced a bill last month that seeks to add DJI to the Federal Communications Commission’s (FCC) list of banned communications equipment, reported the New York Times.
DJI Popularity
DJI drones dominate sales to law-enforcement agencies and hobbyist market in the US. According to David Benowitz, a former DJI employee, DJI drones accounted for 58% of the commercial market in 2022. A Bard College study from 2020 estimated DJI drones share in law-enforcement agencies at 90%.
The Chinese-based company recently opened a showroom in Fifth Avenue, Manhattan, to display its drones, with prices ranging from $279 to at least $9,000. DJI drones are used for a variety of purposes, including amateur and professional photography and videography and architecture.
A Security Threat
Despite being used for civilian purposes, Washington perceives the drone as a national security threat. The US Defense Department (the Pentagon) puts DJI on its list of Chinese military companies that the US armed forces will be banned from purchasing their products in the future. Other federal agencies and programs are likely to be prohibited from purchasing DJI drones as well.
The Chinese drones are widely used in the Russia-Ukraine war, although they are not designed for combat use. The US Treasury and Commerce Departments have penalized DJI for using drones to spy on Uyghurs in the Xinjiang region. Researchers have found vulnerabilities in the drone that Beijing could exploit to gain access to large amounts of personal data.
A New Legislation
The US Congress is considering a new legislation, known as Countering CCP Drones Act, that could halt much of DJI’s business in the US. If this legislation, which enjoys bipartisan support, is signed into law, it could ban new models of DJI drones, but would not apply to drones in use.
The bill could come to a floor vote in the House within a month or two, the NYT cited a China expert who had been briefed on the plans. The legislation is expected to find backing in the Senate, which has introduced a number of restrictions on Chinese-made drones in recent years.
In an emailed statement this month, Republican Representative Elise Stefanik, one of the bill supporters, said: “DJI presents an unacceptable national security risk, and it is past time that drones made by Communist China are removed from America.”
She added that government agencies have found that DJI drones are providing the Chinese Communist Party with data on US “critical infrastructure.”
Lobbying Efforts
DJI has launched a lobbying campaign, in an attempt to influence the drone users to persuade US lawmakers not to ban its drones. According to Open Secrets, a research group tracking money in US politics, DJI spent $1.6mn on lobbying last year. The Senate lobbying disclosures revealed that the company has spent at least $310,000 so far this year.
Moreover, the company has funded a website called the Drone Advocacy Alliance. One of its aims is to raise awareness about the Countering CCP Drone Act and provides a template for directly contacting lawmakers.
The company lawyers have sought to remove DJI from the list of Chinese companies with military ties, but their efforts have so far been unsuccessful. DJI lawyers argued that Chinese state-owned enterprises stakes in the company accounts for less than 6%.
In recent weeks, scrutiny on Chinese technology have increased, with President Biden signing into law on Wednesday a bill that force TikTok owner, ByteDance, to divest the app within a year or face a nationwide ban in the US.
