DJI Drone Ban Looms: Chinese Manufacturer Battles US Security Scrutiny and Lobbying Hurdles

DJI Technologies, the dominant player in the US commercial drone market, faces a potential ban on its products by year’s end unless it clears national security audits, but the drone maker says that its attempts to engage Washington officials are met with silence, reports Bloomberg.

Security Audits and Regulatory Deadline

Congress included a provision in last year’s Pentagon policy bill that mandates national security audits for DJI drones to evaluate data collection risks, including compliance with Chinese laws that could force data sharing with Beijing authorities. This measure also targets competitor Autel Robotics. If audits confirm concerns or if none occur, DJI’s technology could join the Federal Communications Commission’s Covered List, prohibiting new models from sale or import in the US.

DJI asserts it is ready for the audit, but uncertainty persists over which agency—potentially the Departments of Defense or Homeland Security, the Office of the Director of National Intelligence, the National Security Agency, or the Federal Bureau of Investigation—will conduct it. The company has contacted intelligence agencies without response. This raises questions about the process’s implementation, as DJI’s future in the US hinges on these reviews.

Building on that, a recent US District Court ruling left unresolved DJI’s lawsuit against the Pentagon for labeling it a Chinese Military Company. The judge requested access to classified materials for review, including sharing with cleared DJI representatives.

Lobbying Push Meets Resistance

To counter the threats, DJI has ramped up lobbying, spending about $400,000 on lobbyists and law firms this year, according to OpenSecrets. Detailed records reportedly show engagements with firms like CLS Strategies ($270,000), Sidley Austin LLP ($240,000), Porter, Wright et al ($50,000), and Liberty Government Affairs ($45,000), alongside in-house efforts totaling $910,000. Lobbyists include revolving door profiles such as Brian Darling and Michael Borden.

Despite this, DJI struggles to secure meetings. Adam Welsh, DJI’s head of global policy, visited Washington for nearly two weeks in July, seeking discussions with lawmakers across parties. He described confronting a “very established group think” on China, stating:

“They may be accurate on some points, but they’re certainly not accurate about us, and we’re trying to break through and be treated on our own merits.”

Opposition is bipartisan. Florida Republican Senator Rick Scott refused meetings, calling DJI part of a “despicable government” that wants to “spy on us.” New York Republican Representative Elise Stefanik similarly declined, with her spokesman labeling DJI a “Communist Chinese front group.”

Democrat Representative Frank Pallone Jr. emphasized national security risks, stating he supports adding DJI to the banned telecom list under his Secure and Trusted Act, adding:

“I simply won’t stand by and accept that risk, which is why I’ll continue to support DJI being added to the list of banned telecom technology that my Secure and Trusted Act created. This is exactly how I intended this law to work.”

One lobbyist, Brian Darling of Liberty Government Affairs, highlighted challenges:

“Some offices have little knowledge of the specifics of the company and others are ideologically opposed to any company that manufactures and is headquartered in China, even though they all use iPhones manufactured in China.”

Implications for Drone Users and Market

DJI controls over 70% of the US commercial drone market, serving hobbyist, filmmakers, farmers, law enforcement, search and rescue crews and firefighters with cost-effective products compared to US rivals like Skydio. Concerns focus on data vulnerabilities and supply chain security from Shenzhen-based manufacturing.

Some users persist despite risks. Asheville, North Carolina police used DJI drones during Hurricane Helene for rescues, damage mapping, and real-time views, per patrol commander Brandon Moore. In Ross Township, Pennsylvania, Deputy Chief Brian Kohlhepp noted drones aid in finding missing persons and assessing dangerous scenarios, following data safety guidelines.

He argued, “We don’t use [DJI drones] in any capacity where anything that we’re reviewing isn’t publicly available on Google Maps,” and added, “I would argue that the use of the drones wouldn’t reveal anything that compromises national security.”

Conversely, places like Orange County, Florida, halted DJI use after a 2023 state ban. DJI’s partnership with Austin-based Anzu Robotics, which sells its drones, draws criticism as a potential workaround. The House Select Committee on China termed Anzu Robotics a “passthrough” entity, though Anzu reportedly declined comment.

This situation echoes TikTok’s struggles, where parent ByteDance spent millions lobbying against a forced sale, delayed by extensions. DJI’s smaller-scale efforts underscore the uphill battle for Chinese tech firms amid US-China tensions. For drone professionals and enthusiasts, a ban could limit affordable options, shifting reliance to pricier alternatives and altering operational choices in fields like agriculture and public safety.

Welsh expressed willingness for scrutiny: “We’ve been through the meat grinder on this issue, and we’re happy to put ourselves through the meat grinder again,” but stressed, “We’d love to get to the point where we could actually have a conversation.”