Lawmakers Target DJI’s Alleged US Drone Loophole Through Anzu Robotics

U.S. lawmakers are sounding the alarm over what they perceive as a potential security threat from Chinese drone manufacturer DJI. The company is accused of using an unusual licensing agreement to sidestep restrictions on its products in the American market. The House Select Committee on the Chinese Communist Party has called for an investigation into Anzu Robotics, a Utah-based company that manufactures drones using DJI technology, in what lawmakers claim is an attempt to circumvent U.S. security measures.

The DJI-Anzu Connection: A Closer Look

Anzu Robotics, operated by a single full-time employee, has secured a license from DJI to produce drones that are nearly identical to DJI’s popular Mavic 3 Enterprise drone. What sets this arrangement apart is the unusual nature of the licensing agreement. According to reports, Anzu doesn’t pay for the license and manufactures the drones in Malaysia with assistance from a DJI-linked manufacturer.

Committee chairman John Moolenaar (R-Mich.) expressed strong concerns about this arrangement, stating, “We cannot allow Chinese companies to evade American scrutiny by white labeling their products. The U.S. Government must take action to address this national security concern and flagrant disregard for American law.”

The lawmakers’ letter to Anzu’s CEO, Randall Warnas, highlights the unusual nature of this business relationship.

They write, “The nature of the DJI-Anzu relationship appears to defy common business conventions. For instance, Anzu claims that DJI is providing its industry-leading drone technology to it through a license that gives ‘Anzu Robotics the rights to modify and manufacture this technology at will. There are no royalties shared with the licensing organization, no joint or shared ownership of Anzu Robotics, and no reporting on customer data.”

Potential Market Impact and Drone Industry Dominance

The scrutiny comes at a critical time for DJI, as the company faces a potential ban on new models in the U.S. market as soon as 2025. This looming ban is part of a broader push to limit the presence of Chinese technology in sensitive sectors of the American economy.

The impact of such a ban could be significant, given DJI’s dominant position in the U.S. drone market. As of 2020, DJI held approximately 77% of the U.S. commercial drone market. Even more striking is its presence in the public safety sector, with an estimated 90% of drones used by U.S. public safety agencies made by the company.

Several states have already taken action, halting sales of Chinese drones to local law enforcement agencies. Florida, Mississippi, and Tennessee are among the states that have implemented such restrictions, signaling growing concern at the state level about the security implications of using Chinese-made drones in sensitive operations.

Security Concerns and Data Harvesting Risks

At the heart of the lawmakers’ concerns is the potential for data harvesting through these drones. The fear is that sensitive information collected by drones used in law enforcement, infrastructure inspection, or other critical applications could be accessed by the Chinese government.

The letter to Anzu’s CEO demands detailed answers about the company’s relationship with DJI, including specifics on software origins and data security measures. Among the questions posed are requests for information about the Malaysian factories producing Anzu drones, entities contributing to the software and firmware in Anzu products, and steps taken to ensure DJI doesn’t extract data from U.S. customers when providing technical support.

Randall Warnas, CEO of Anzu Robotics, defended the arrangement in a statement to the Washington Post, saying, “It could be just like a monthly fee … but I am unaware of that and I like to be unaware of that because then I could say I don’t know how DJI is benefiting from this.”

He also claimed that Anzu rebuilt the DJI software using an American firm called Aloft Technologies Inc. and stores data on U.S. servers, attempting to address some of the security concerns raised by lawmakers.

Implications for Public Safety and Law Enforcement

Despite the security concerns raised by lawmakers, some local law enforcement agencies are expressing hesitation about potential restrictions on DJI-based drones. These agencies have come to rely heavily on DJI technology for various operations, from Keresés és mentés missions to SWAT team deployments.

Kyle Nordfors, drone search-and-rescue coordinator for Weber County, Utah, voiced strong opposition to legislation that would ban DJI drones.

Nordfors told the Washington Post, “American lives will be lost because of it. I’ve yet to meet a public safety agency that is in favor of it.”

Nordfors’ statement underscores the complex balance between national security concerns and the practical needs of first responders and law enforcement agencies.

The potential ban on DJI products could create a significant gap in the market that American manufacturers might struggle to fill immediately. This raises questions about the readiness of the U.S. Drón ipar to meet the demands of public safety agencies if DJI products are suddenly unavailable.

Legislative Action and Government Response

The U.S. government has been taking increasingly stringent measures against DJI and other Chinese technology companies. The House has passed the Countering CCP Drones Act, which would prohibit DJI technology from accessing U.S. communication networks if signed into law. This act represents a significant step in the ongoing efforts to limit the influence of Chinese technology in critical U.S. infrastructure.

Additionally, other government agencies have taken action:

1. The Pentagon has placed DJI on its blacklist as a ‘Chinese military company,’ prohibiting procurements by the U.S. military.
2. The Treasury Department forbids Americans from investing in DJI.
3. The Commerce Department restricts U.S. companies from exporting technology to DJI.

These actions reflect a growing consensus among U.S. policymakers about the potential risks associated with Chinese technology companies, especially those with ties to the Chinese military or government.

The Broader Context: U.S.-China Tech Competition

The controversy surrounding DJI and Anzu Robotics is part of a larger narrative of technological competition between the Egyesült Államok and China. As tensions between the two Countries have escalated in recent years, technology has become a key battleground, with concerns about national security, data privacy, and industrial espionage at the forefront.

The drone industry is particularly sensitive due to the dual-use nature of the technology. Drones used for civilian purposes, such as photography or infrastructure inspection, can potentially be adapted for military or intelligence-gathering purposes, as we have seen in the Ukrajna – Oroszország conflict.

This dual-use potential has led to increased scrutiny of companies like DJI, which dominate the commercial drone market but have alleged ties to the Chinese military.

Industry Response and Future Outlook

The drone industry is closely watching the developments surrounding DJI and Anzu Robotics. If restrictions on DJI products are implemented, it could create opportunities for other drone manufacturers, particularly U.S.-based companies, to gain market share. However, there are concerns about whether these companies can quickly scale up production to meet the demand currently satisfied by DJI.

Some industry experts argue that the focus should be on developing robust data security protocols rather than banning specific manufacturers. They contend that with proper safeguards in place, the risks associated with foreign-made drones could be mitigated without sacrificing the technological advantages they offer.

DroneXL’s Take

The controversy surrounding DJI and Anzu Robotics highlights the complex interplay between national security concerns and the practical needs of drone users, particularly in public safety sectors. While lawmakers are right to scrutinize potential security risks, it’s crucial to consider the impact on first responders who rely on these drones for critical operations.

Recent articles on DroneXL have shown the increasing importance of drones in search and rescue missions and law enforcement activities. For instance, our coverage of keresési és mentési műveletek demonstrates how drones have become indispensable tools in locating missing persons and assessing dangerous situations. The potential ban on DJI products could create a significant gap in these capabilities that American manufacturers might struggle to fill immediately.

Moreover, the data security concerns raised by lawmakers are valid and deserve thorough investigation. However, it’s important to balance these concerns with the need for technological advancement in the drone industry. The outcome of this investigation could set a precedent for how the U.S. handles foreign technology in sensitive sectors moving forward.

As the drone industry evolves, it’s essential to strike a balance between security concerns and technological advancement. The U.S. government and the drone industry must work together to develop solutions that address security risks while maintaining access to cutting-edge drone technology for critical applications.

What are your thoughts on this developing situation? Do you think the security risks outweigh the benefits of using DJI-based technology in public safety drones? How might this impact the future of the U.S. drone industry? Share your opinions in the comments section below.​​​​​​​​​​​​​​​​