House Committee Moves to Ban Chinese Drone Purchases by the US, Chinese drone maker DJI controls more than 70% of the global drone market

beijingwalker · Nov 19, 2023

House Committee Moves to Ban Chinese Drone Purchases by the US

US bipartisan push to ban Chinese drones for national security, affecting DJI.

John Lopez, Tech Times 01 November 2023, 12:11 pm

A bipartisan effort led by the US House Committee on China is set to introduce the "American Security Drone Act," which seeks to prohibit the US government from purchasing Chinese-made drones.

Reuters reports that the bill, co-sponsored by Republican Chair Mike Gallagher and Democratic Ranking Member Raja Krishnamoorthi, aims to address growing concerns about potential vulnerabilities posed by Chinese drone technology within US government agencies.

The proposed legislation follows a unanimous vote in the US Senate on Tuesday, where an amendment was approved to prohibit the Federal Aviation Administration (FAA) from operating or funding drones produced in countries including China, Russia, Iran, North Korea, Venezuela, or Cuba.

(Photo : Photo by Bruce Bennett/Getty Images)
OLD BETHPAGE, NY - AUGUST 30: A drone is flown for recreational purposes in the sky above Old Bethpage, New York on August 30, 2015.

A Global Market Dominated by China

China, particularly companies like DJI, is a dominant force in the global drone market.

DJI controls more than 70% of the global drone market. According to a Drone Industry Insights report, the market will grow from $30.6 billion in 2022 to $55.8 billion by 2030.

This legislation focuses on cutting off the purchase of Chinese drones by US federal agencies, and local and state governments using federal grants. It aims to create transparency regarding the extent of foreign-manufactured drone procurement.

DJI, the world's largest producer of commercial drones, has a market share of 58%, with products extensively used across various sectors, from photography to law enforcement.

Autel, another Chinese drone manufacturer, holds 7.8% of the US commercial drone market, according to drone analyst David Benowitz. While the bill does not explicitly name specific companies, it is clear that DJI and Autel are the primary targets.

Bipartisan Effort to Protect National Interests

The American Security Drone Act is a bipartisan effort emphasizing the urgency of the legislation to protect US interests and the national security supply chain.

Lawmakers have become increasingly concerned about the security risks associated with Chinese drones, especially following their deployment in international conflicts.

This legislation seeks to narrow the technological gap between Chinese and US drones, as American companies have faced challenges due to Chinese subsidies.

DJI's Perspective

DJI, the primary target of the legislation, has expressed its opposition to any restrictions that limit market choice or ban technology based on its country of origin.

Firstpost reports that Adam Welsh, DJI's head of global policy, argued that such restrictions could have safety implications and negatively impact small businesses relying on DJI products and software.

DJI asserts that its products have undergone extensive testing by government agencies and can be operated securely without an internet connection.

Notably, DJI has enjoyed support from US police agencies that find its products cost-effective and essential for their operations.

International Relations and Ongoing Efforts

The US government has taken several steps to address concerns over Chinese technology, including adding DJI to an investment blacklist due to alleged support for the surveillance of Muslim Uyghurs in Xinjiang.

The Chinese embassy has urged the US to abandon a "cold war mentality" and cease unwarranted suppression of Chinese companies.