DJI Addresses Concerns Ahead of Congressional Hearing on Drone Competition

In a letter sent to the Select Committee on Strategic Competition between the United States and the Chinese Communist Party, Chinese drone manufacturer DJI has preemptively addressed concerns about its operations and products. The letter, dated June 25, 2024, and addressed to Chairman John R. Molenaar comes in advance of a hearing where a domestic drone manufacturer is set to testify.

Key Points from DJI’s Letter

DJI, founded in 2006, has grown from a single dorm room operation to a global leader in drone technology. The company emphasizes its contribution to various industries, including law enforcement, agriculture, and search and rescue.

Economic Impact and Market Position

DJI claims its products enable “more than $116 billion in economic activity across the U.S. and supports more than 450,000 American jobs.” The company warns that restrictions on DJI drone use or imports could significantly impact the U.S. drone ecosystem.

Ownership and Government Influence

The letter states that DJI is a private company, with founder Frank Wang and co-founders holding 97% of voting rights. It asserts that “no government entity or its representatives sit on DJI’s board or have any role in its management.”

Product Pricing and Competition

Addressing accusations of “product dumping,” DJI attributes its competitive pricing to “mass production, supply chain integration, global price competition, and continual investment in research and development.”

Military Use and Sanctions Compliance

DJI firmly states it “does not manufacture military-grade equipment and does not market or sell products for use in combat.” The company also claims to adhere to U.S. sanctions lists and has “suspended all business activities in Russia and Ukraine in April 2022.”

Data Security and Privacy

The letter emphasizes that DJI customers control their data, with options like “Local Data Mode” to prevent network requests. DJI also states it has “never received any requests for data under China’s National Security Law.”

Industry Implications

DJI’s proactive communication highlights the intensifying scrutiny of Chinese technology companies in the U.S. market. The company’s emphasis on its economic impact and data security measures indicates an attempt to maintain its market position amid growing concerns about foreign-made drones.

DroneXL’s Take

DJI’s letter to Congress represents a significant move in the ongoing debate about drone technology and national security. As the market leader with a growing share, DJI’s response to potential restrictions could shape the future of the U.S. drone industry.

While the company’s arguments about economic impact and data security are compelling, they also highlight the complex relationship between global technology supply chains and national security concerns. As the drone industry continues to evolve, balancing innovation, economic benefits, and security will remain a critical challenge for policymakers and industry leaders alike.