Chinese Drone Maker DJI Faces Uncertain Future As It Faces US Blacklist
December 19, 2020
Chinese drone maker DJI is the latest company added to the US trade blacklist, throwing its future into uncertain territory.
The US and China have been locked in a costly trade war, one that has involved casualties on both sides. The US has blacklisted Huawei and ZTE, claiming the telecom companies represent a threat to national security.
Now the US has added DJI to the U.S. Department of Commerce’s Entity List, according to
Digital Trends. Being on the Entity List means that US companies can’t do business with DJI without a special license. The US is concerned about data Chinese companies could collect on US citizens, as well as drone technology being used in China’s persecution of ethnic minorities.
The U.S. Department of Commerce s Entity List which denotes companies of national security concern has added DJI, one of the largest and most popular drone companies in the world for its connections to the Chinese government, according to the Federal Register listing.
This effectively bans U.S.-based companies from exporting technology to the Chinese company.
US government bans exports for DJI drones over ties to Chinese government
The ban was executed via the same mechanism the U.S. is currently using on Huawei products and is principally focused on blocking the export of U.S. technology to the China-based drone-maker.
The sky is falling in, the sky is falling in!
Making big news in the community but not that much of a drama for DJI, who will still be able to sell products into America. DJI has been added to the US Department of Commerce’s Entity List, American companies will need permission to export bits, particularly chips to DJI. The list is not only Chinese companies, France and Germany also have a couple of contenders.
This very much brings ITAR to mind. The American missile technology export restrictions that stopped the US sUAS industry in its tracks in the early 2000’s and made 3DR produce it’s stuff in Mexico. This was all at a time when the idea of sub $500 GPS and autopilot equipped RPAS was laughed out of meetings full of grown-ups.
(Pocket-lint) - The US Department of Commerce’s Entity List has added DJI, one of the world s most popular drone makers, officially blacklisting the Chinese company by declaring it a national security concern. The Entity List also bans any US-based company from exporting technology to DJI.
Here s everything you need to know.
What does this mean for DJI?
By being on the US Department of Commerce s Entity List, DJI will now find it difficult to source parts and components for its drones from US companies, which could significantly disrupt its supply chains. It could also complicate whether US stores can transact with DJI or even sell its products.
18 December 2020, 12:29 pm EST By
One of the largest and most popular drone companies in the world, DJI, has been added to the US Department of Commerce s Entity List.
The US government has designated the Chinese company as a national security risk and that it is banning US-based companies from doing business with DJI.
DJI banned
Reuters reported the news and cited a conference call with a senior commerce official about the ban of DJI. The ban was put in place through the same way as the US government s ongoing ban on Chinese telecom company Huawei and its products.
The decision of the US government will make it difficult for US companies such as Amazon and Best Bu to sell DJI products.