Trump–Xi Truce Pauses BIS ‘50% Affiliates’ Rule — But DJI Still Faces Dec. 23 FCC Deadline

A one-year U.S.–China trade truce announced after President Trump met President Xi in Busan includes a pause of the Commerce/BIS “50% affiliates” rule, tariff trims, and commitments on soybeans, fentanyl precursors, and rare earths. It does not stop the NDAA clock that could put DJI on the FCC Covered List on December 23, 2025 if no U.S. national-security agency issues a determination before then.

One day earlier, the FCC voted to let itself restrict some previously approved gear tied to Covered-List entities—raising stakes for any future DJI listing.

What exactly was paused?

In late September, the Commerce Department’s Bureau of Industry and Security (BIS) issued an interim final rule applying an OFAC-style “50% rule” to the Entity List and MEU List: subsidiaries ≥50% owned by listed parties would be treated as listed, closing a common circumvention route (Federal Register text; BIS press note Sep 29).

After the Busan meeting, the U.S. suspended that expansion for one year as part of a broader package, according to Treasury secretary Scott Bessent and multiple outlets, including Reuters. Former officials noted the pause could blunt the rule’s reach, which analysts had said might otherwise expand coverage from roughly 1,300 to 20,000+ entities, according to a Reuters analysis.

What else is in the package?

• Tariffs: The U.S. is trimming China tariffs by roughly 10 percentage points alongside fentanyl-related commitments and a pause on certain rare-earth restrictions.
• Soybeans: Bessent said China will buy 12 million metric tons this season and 25 MMT per year for three years; other buyers may add ~19 MMT. He made the announcement on Fox Business; AP and Reuters reported the same volumes.
• Rare earths: China will pause its latest rare-earth export curbs for one year as part of the truce.

The Dec. 23 deadline that still looms

The FY-2025 NDAA creates a one-year window (from Dec. 23, 2024) for an “appropriate national-security agency” to make a determination on specified communications/video-surveillance equipment. If no determination is made by Dec. 23, 2025, the FCC must add those items to the Covered List. It’s a determination (often described as a “review”), not necessarily a formal audit.

DJI has publicly said it’s ready to participate and has seen no sign the process has begun, urging the government to start the review or extend the deadline.

What the FCC just changed

On Oct. 29, the FCC unanimously approved an order closing loopholes in its supply-chain rules, including authority to restrict or bar previously authorized equipment associated with Covered-List entities. The order doesn’t name DJI (which is not on the Covered List today) and sets no public “retroactive-to” date; it creates a pathway to act against already authorized devices in certain cases.

If DJI were added to the Covered List after Dec. 23, the immediate, clearer effects would be: no new FCC equipment authorizations and no imports/marketing of new radio-based DJI devices. Potential knock-on effects to firmware updates, repairs, or non-RF software support are unclear—the FCC polices RF authorization/import/marketing, not ordinary software support by default.

Why the affiliates pause matters to the “shell-brand” story

The paused BIS rule would have automatically captured subsidiaries of listed firms—a big deal for any alleged proxy networks. Investigations have tracked U.S. brands that appear to use DJI OcuSync-compatible radios while avoiding overt corporate ties—raising questions about relabels and white-label shells on Amazon.

What it means for U.S. drone operators and dealers

• Short-term: The truce reduces near-term risk that affiliates get swept up en masse, but doesn’t change the NDAA’s Dec. 23, 2025 deadline for a DJI determination.
• Medium-term: If DJI is listed, expect no new FCC approvals/imports and be prepared for possible FCC actions affecting some previously authorized gear—case-specific, not a blanket rule.
• Procurement planning: Agencies and enterprises refreshing fleets in 2026 should scenario-plan now (e.g., spares, lifecycle timing, mixed fleets) while watching for a formal agency determination—or a deadline extension.

What to watch next

Watch for any sign of an agency determination from DoD, DHS, FBI, NSA, or ODNI—because if none appears by Dec. 23, the statute directs the FCC to add the equipment and services to the Covered List. Also monitor the FCC’s implementation details from the new order, especially how and when it might apply to already-authorized gear, and look for formal agency guidance on the truce measures, including how the U.S. will codify the affiliates-rule pause and any maritime/logistics steps.

DroneXL’s Take

The Busan truce buys time on the affiliates front but doesn’t stop the NDAA clock. For DJI, the only durable off-ramp is an agency determination before Dec. 23—or an explicit extension.

For operators and dealers, assume status quo through year-end, plan for import/authorization constraints if DJI is listed, and keep an eye on how the FCC applies its new authority to previously authorized devices. The shell-brand angle remains relevant, but the immediate determinant is the NDAA timeline, not the trade-talk mood.

We hope the Busan truce is a starting point, not a finish line. A durable, transparent path that keeps DJI products available in the U.S.—while addressing legitimate security concerns—would spare commercial operators, dealers and recreational drone fliers unnecessary disruption.