In light of escalating tensions between the US and China, DJI, the world's largest drone manufacturer, has filed a lawsuit against the US Department of Defense on October 19, 2024, seeking to remove its designation as a 'Chinese military company' from a Pentagon blacklist. The company argues that this classification is erroneous and has caused significant financial harm, including lost business deals and contract terminations. DJI maintains that it is neither owned nor controlled by the Chinese military, asserting that it primarily focuses on consumer and commercial drones. The lawsuit follows over 16 months of non-engagement from the Defense Department regarding the designation, which DJI claims has stigmatized it as a national security threat. [5b73d77a] [6725ee72]
The legal challenge occurs amid rising tensions between the US and China, particularly as the House of Representatives recently passed the 'Countering CCP Drones Act' as part of the 2025 National Defense Authorization Act. This legislation seeks to prohibit the sale of DJI drones in the United States, citing national security concerns related to Chinese technology. The bill, introduced by Congressman Mike Gallagher and Congresswoman Elise Stefanik, passed by a narrow margin of 217:199 and is now headed to the Senate for further consideration. [8668651f] [f09c0b2d]
In a parallel development, China's Ministry of Commerce has expressed support for legitimate international trade in civil drones while opposing illegal drone use. He Yadong, a representative from the ministry, emphasized the importance of compliance with non-proliferation obligations and announced a new export control list effective December 1, 2024. This move reflects China's commitment to regulating dual-use items, which can have both civilian and military applications. The ministry has also maintained communication with the US Department of Commerce to address trade concerns. [4b32617b] [d4ae5226]
DJI has criticized the potential ban, arguing that the security concerns behind the legislation are unfounded. The company highlights that its drones are widely used for non-commercial purposes, including aiding first responders. The proposed legislation aims to ban DJI products, accessories, and software in the US, although it would not affect the use of existing DJI drones. [953c7588]
The ban on DJI drone sales is part of a broader trend of tariffs and restrictions against successful Chinese companies in the US. While the ban is framed as a national security measure rather than a trade conflict, it underscores the escalating tensions between the two nations. [f09c0b2d]
Concerns have been raised that existing FCC authorizations for DJI products could be revoked if the bill becomes law, which would have significant implications for both DJI and drone enthusiasts worldwide. Importantly, the ban does not prohibit the use of already purchased DJI drones in the US. [f09c0b2d]
If the National Defense Authorization Act (NDAA) is passed in its current form, drones used by first responders, farmers, researchers, and law enforcement may become illegal. The legislation aims to restrict companies with Chinese ties, significantly impacting the drone market. DJI refutes claims that data from its drones will be accessed by the Chinese Communist Party (CCP) and used against Americans. The company argues that banning companies with Chinese ties is impractical, as it would lead to a ban on millions of products used daily by American consumers. [a472d01a] [f09c0b2d]
DJI claims to have implemented measures to ensure the security of its drones, including cybersecurity and data security practices. The company has a $116 billion economic impact on the American economy, supporting approximately 450,000 jobs. The Countering CCP Drones Act would empower the Federal Communications Commission (FCC) to prevent the purchase of DJI drones without evidence. Advocates are calling for Congress to remove drone provisions from the NDAA and engage in a broader debate to establish facts and allow stakeholders to weigh in. [953c7588] [a472d01a]
In an editorial by the Global Times, it was noted that DJI's lawsuit underscores a pattern of US suppression of successful Chinese companies under the guise of national security. The editorial highlighted previous cases, such as Xiaomi in 2021 and Hesai Technology in 2023, suggesting that the US government's tactics reflect historical patterns of American hegemony. The negative impact of the US ban on DJI is evident across various sectors that rely on its products, and the lawsuit aims to uphold fair competition while challenging US political maneuvering in international trade. [4deb157c]
As the US-China trade relationship continues to evolve, it was reported that bilateral trade grew by 4.2% to 4.4 trillion yuan ($605.7 billion) from January to November 2024. This growth occurs despite the ongoing tensions and challenges faced by companies like DJI. Gao Lingyun, a Chinese trade expert, advocates for deeper cooperation with ASEAN and the EU, emphasizing the need for multilateral trade mechanisms to counter unilateralism. [4b32617b] [d4ae5226]