Drone maker DJI facing U.S. FCC ban — the national security risk and part China-state ownership are key issues

DJI Mavic 3 drone
(Image credit: DJI)

U.S. authorities have their sights set on China-based drone maker DJI, a company that has popularised drones for consumer and commercial markets globally. The U.S. Congress intends to ban it, as they have begun to see DJI as a national security threat. Once the bipartisan legislation passes and the firm is added to the Federal Communications Commission's (FCC) communications infrastructure blocklist, DJI's business in the U.S. will effectively be over. 

DJI sells drones in a wide range of markets, from consumer, to agriculture, and delivery businesses. Professional amateurs and content creators have used these drones for a variety of applications. Though its primary purpose is either personal or commercial, that doesn't stop it from being used for nefarious reasons - or worse.

DJI's drones aren't designed for combat, but the firm is facing an issue with U.S. lawmakers largely because 6% of its stocks are in the hands of Chinese state-owned businesses. There are fears of vulnerabilities and / or backdoors in the DJI app, and that profits from DJI's business will strengthen the CCP.

Representative Elise Stefanik, the New York senator said, "DJI presents an unacceptable national security risk, and it is past time that drones made by Communist China are removed from America." DJI however refutes these claims. Regina Lin the spokesperson for DJI denied its drones were used for human rights violations as they are not made for surveillance

While the company does not sell drones for military purposes, DJI drones are known to have been used in Russia's war against Ukraine. Its products were also used to spy on Uyghur Muslims in Xinjiang, though no ban was issued as a direct response at the time. If one imposes the same treatment on other companies, many entities would fall under it. Divesting or discouraging companies that actively engage in human rights violations is important, irrespective of which side they are from. 

Privacy is always a concern that should not be exclusive to companies from a particular nation. Regardless of the reasons, banning tech companies from selling and operating looks to have little to no effect on many companies and countries in the longer term

Once legislation is passed, the sales of DJI drones, even to consumers, will be banned. Any such ban would seriously affect its 58% market share in the commercial market as of 2022, according to numbers shared by a former employee. While this may not affect currently owned drones in the U.S., cutting off product sales encourages companies to exit the market, often cutting the availability of service and official spare parts at the same time. This is no different than bans like Huawei, NAND maker YMTC, and the ongoing process to ban Tiktok

Just like how the restriction of U.S. tech has resulted in Chinese chipmakers prospering, there's also a good chance that other drone companies may benefit from this ban, as long they can fill the gap. 

TOPICS
Roshan Ashraf Shaikh
Contributing Writer

Roshan Ashraf Shaikh has been in the Indian PC hardware community since the early 2000s and has been building PCs, contributing to many Indian tech forums, & blogs. He operated Hardware BBQ for 11 years and wrote news for eTeknix & TweakTown before joining Tom's Hardware team. Besides tech, he is interested in fighting games, movies, anime, and mechanical watches.

  • hotaru251
    so basically now if China has any stock ownership in something tis a security risk?

    guess should ban tencent games as could be security risks...
    Reply
  • parkerthon
    6 percent? You have got to be kidding me. Just say we’re in a cold war with China and be done with. This pissing match is going to cause so much economic damage globally.
    Reply
  • aetherwing
    might as well just ban everything from china at this point:rolleyes:
    Reply
  • USAFRet
    As a hobbyist drone pilot, I do not have a DJI due to the onerous geofencing in the application.

    To fly in my backyard, not only would I have to get permission from the local airport and FAA (known, and OK), but also, permission from the DJI mothership.

    Other systems don't have that level of control and data sharing.
    Reply
  • arsIgnis
    The next closest non-Chinese consumer drone costs like 5-10x as much as DJI and still isn't as reliable (think like $10k). All the U.S. consumer drone makers checked out of the consumer market and went after military contracts only (and still aren't very reliable lol) due to their basically unlimited budget.

    If lawmakers think it will give the U.S. an edge by just banning the competition, they can think again. It won't spur the kind of innovations they think it will on the consumer front. Stuff like drone delivery and military were always doing their own thing, so it won't effect those markets. All a ban on DJI would do is kill off small businesses and innovators.

    The better option would be to invest in the U.S. companies to spur on their desire and ability to compete. Encourage chip manufacturing in the U.S. to be more competitive and accessible to those willing to innovate, so we can have affordable flight controllers, etc. Also, looser regulations for small independent businesses with more strict regulations for larger ones (otherwise major corporations just end up with a nice regulatory moat, insulating them against potential startups and innovations).

    There needs to be more competition, not less. Accelerate innovation instead of killing it.
    Reply
  • USAFRet
    arsIgnis said:
    The next closest non-Chinese consumer drone costs like 5-10x as much as DJI and still isn't as reliable (think like $10k). All the U.S. consumer drone makers checked out of the consumer market and went after military contracts only (and still aren't very reliable lol) due to their basically unlimited budget.
    Its not just Chinese vs non-Chinese.
    Rather, it is DJI vs all the other ones.

    My Chinese made quadrotor does not have that same level of interaction and control with homebase, and was only a couple hundred $$.
    Reply
  • gioni6210
    USAFRet said:
    Its not just Chinese vs non-Chinese.
    Rather, it is DJI vs all the other ones.

    My Chinese made quadrotor does not have that same level of interaction and control with homebase, and was only a couple hundred $$.
    Can you please tell me what Chinese quadrotor you are talking about. name and link would be great too, as I am a beginner from the US...and poor...so a quadcopter for a few hundred sounds enticing. thanx
    Reply
  • USAFRet
    gioni6210 said:
    Can you please tell me what Chinese quadrotor you are talking about. name and link would be great too, as I am a beginner from the US...and poor...so a quadcopter for a few hundred sounds enticing. thanx
    I have a HolyStone HS720G
    https://www.amazon.com/gp/product/B09N37GND2
    Reply
  • gioni6210
    USAFRet said:
    I have a HolyStone HS720G
    https://www.amazon.com/gp/product/B09N37GND2
    thank you sir...you are a scholar and a gentlemen :)
    Reply
  • COLGeek
    gioni6210 said:
    thank you sir...you are a scholar and a gentlemen :)
    I have the same make/model and it is quite capable for the cost.
    Reply