DJI's Well-Loved Chinese Drones Temporarily Escape Ban, Potentially Face Future Prohibition

DJI's Well-Loved Chinese Drones Temporarily Escape Ban, Potentially Face Future Prohibition

The leading drone manufacturer globally, Da Jiang Innovations (DJI), has an additional year to persuade United States defense organizations that their products pose no threat to America's national security.

The Chinese corporation was facing an immediate prohibition on the use of its products if the U.S. Senate had incorporated language from the Countering CCP Drones Act, which was approved by the House in September, into the final version of the National Defense Authorization Act (NDAA). Instead, the Senate chose to provide DJI and Autel Robotics, another Chinese drone manufacturer, a temporary reprieve.

The NDAA, which the Senate authorized with a substantial majority on Wednesday, is now pending President Joe Biden's signature. The Act includes a provision instructing an "appropriate national security agency" to review DJI and Autel products—including drones and any other communication or video surveillance equipment—to determine if they pose a risk to the U.S.

The agency has a year from the NDAA's enactment to make its decision. If it determines that the companies' products pose a threat, the Federal Communications Commission will be required to add those products to the so-called covered list, prohibiting their marketing and sale. Owners of DJI and Autel products purchased prior to their addition to the covered list would still be able to use their devices.

All the equipment currently on the covered list originates from Chinese tech giants, such as Huawei, ZTE Corporation, Hytera Communications, Hikvision, Dahua Technology, China Mobile International, China Telecom Americas Corporation, Pacific Networks Corporation, and China Unicom Americas, besides Russia-based Kaspersky Labs.

In a blog post, DJI expressed relief that the Countering CCP Drones Act was not included in the NDAA, but expressed concern that the "legislation unfairly targets drones manufactured in China and does not designate an agency to conduct the required risk assessment." Should no agency assume this responsibility, DJI's products would be automatically included on the covered list, the company stated.

Even if an agency takes up the review, several U.S. defense agencies have already declared a firm stance against Chinese-made drones.

In a 2021 statement, the Department of Defense (DOD) confirmed that military agencies were prohibited from using DJI equipment, stating that the company's systems pose potential threats to national security.

Just this year, the FBI and Cybersecurity and Infrastructure Security Agency (CISA) released a joint memo warning that the Chinese government could collect sensitive information about Americans and the country's infrastructure through drone equipment manufactured in China.

In addition to these security concerns, politicians have criticized DJI due to its market dominance. By majority estimates, DJI has controlled at least 70 percent of the U.S. drone market for several years.

Supporting the passage of the Countering CCP Drones Act, the bill's sponsor, Congresswoman Elise Stefanik (R-NY), argued, "It is strategically irresponsible to allow Communist China to be our drone factory."

The absence of the Countering CCP Drones Act in the final version of the NDAA might provide DJI with more time to demonstrate the security of their tech products. As stated by the Department of Defense in a 2021 statement, there are concerns about potential threats posed by Chinese-made drones, including DJI's, to national security.

With technology continually advancing, the future of drone manufacturing could see a shift away from Chinese companies like DJI if concerns about national security persist.

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