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China Demands ‘Fairness’ as US Bans New Drones From DJI, Others

New US rules are set to have the hardest impact on China’s DJI, which is the world’s largest drone maker and accounts for an estimated 80% of all commercial drones sold in the US


DJI brand signage is displayed in New York
DJI brand signage is displayed in New York. Photo: Sipa USA via Reuters

 

China’s foreign ministry urged the US on Tuesday to stop banning approvals for all new foreign-made drone systems and “provide fairness” for companies like DJI, following the Trump administration’s new rules out this week.

The US Federal Communications Commission (FCC) said on Monday it was adding China’s DJI, Autel and all foreign-made drones and components to its new “Covered List” — a list of companies deemed to pose unacceptable risks to US national security.

The addition to the list means that DJI, Autel and other foreign drone companies will not be able to obtain FCC approval to sell new models of drones or critical components in the US, which is required. The agency has also said it would bar approvals of new types of foreign-made drones for import or sale in the US.

 

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The FCC designation does not, however, prohibit the import, sale or use of any existing device models the telecom regulator previously authorised, and does not impact any previously purchased drones, the FCC said. It added that consumers can continue to use any drones they previously purchased legally.

Still, the move is a significant escalation in Washington’s battles to crack down on Chinese drones in recent years. It’s set to have the hardest impact on China’s DJI, which is the world’s largest drone maker and accounts for an estimated 80% of all commercial drones sold in the US.

China’s foreign and commerce ministries both denounced the new rules on Tuesday, with the latter saying it was opposed to the “discriminatory list”. The ministry vowed measures to protect the rights and interests of Chinese firms.

DJI said it was disappointed by the FCC decision. “While DJI was not singled out, no information has been released regarding what information was used by the Executive Branch in reaching its determination,” the company said.

The company said earlier this month that “more than 80% of the nation’s 1,800+ state and local law enforcement and emergency response agencies that operate drone programs use DJI technology; these programs will be at immediate risk if they no longer have access to the most cost-effective and efficient drone technology available.”

 

Long-running plans

DJI has previously said that being added to the Covered List would effectively ban it from offering new drone models in the United States.

Lin Jian, a spokesperson for China’s foreign ministry, said on Tuesday that China opposed the US’ “overly broad interpretation of the concept of national security” and setting up “discriminatory” lists. He urged Washington to “correct its wrong practices” and provide a fair environment for Chinese companies.

The FCC said it received the results of a White House-convened, executive-branch interagency review of the risks of foreign drones on Sunday, which found that imported drones and components pose security risks “given the threats from unauthorised surveillance, sensitive data exfiltration, supply chain vulnerabilities, and other potential threats to the homeland.”

The review said the Pentagon could make future determinations that specific drones, or drone classes, do not pose risks and remove them from the restrictions.

This week’s ban is a culmination of a long-running push by Trump — starting all the way back from his first term — to stem the flow of Chinese-made drones in the US.

Trump renewed that push this year when he signed an executive order that aimed to reduce US reliance on Chinese drone companies. Three months later, in September, the Commerce Department said it planned to issue rules to restrict Chinese drone imports.

 

Olympics, FIFA in focus

Sebastian Gorka, senior director of counterterrorism at the National Security Council, said the action was part of ensuring that drones are made in the United States. “Drones are a large part of America’s future security. They must be made in the USA,” he wrote on X Monday.

Trump and the FCC both cited the upcoming Olympics and the FIFA World Cup and concerns about drone misuse.

Republican Representative Rick Crawford praised the decision, saying “the use of Chinese-made drones, with widespread access over the US airspace, has been a counterintelligence nightmare for years … we cannot compromise our national security in exchange for cheap goods intended to flood the US market.”

Chinese firms, meanwhile, could turn to legal measures to attempt an overturn of the bans.

Chinese manufacturer Hikvision filed suit in the US Court of Appeals for the District of Columbia earlier this month, challenging the FCC decision to block new approvals for devices with parts from companies on its Covered List and let the agency bar previously approved equipment in some instances.

In September, DJI also appealed a US court for it to be removed from the US Defence Department’s list of companies allegedly working with Beijing’s military. A US judge rejected its bid.

 

  • Reuters, with additional editing and inputs from Vishakha Saxena

 

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Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]