🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

Congress could ban new drones from two Chinese manufacturers

Published 12/09/2024, 02:20 PM
Updated 12/09/2024, 03:30 PM
© Reuters. FILE PHOTO: Logo of DJI Enterprise at the Milipol Paris, the worldwide exhibition dedicated to homeland security and safety, in Villepinte near Paris, France, November 15, 2023. REUTERS/Sarah Meyssonnier/File Photo

By David Shepardson

WASHINGTON (Reuters) -China-based DJI and Autel Robotics could be banned from selling new drones in the United States market under an annual military bill set to be voted on later this week by the U.S. House of Representatives.

The 1,800-page bill says a national security agency must determine within one year if drones from DJI or Autel Robotics pose unacceptable national security risks.

DJI, the world's largest drone manufacturer that sells more than half of all U.S. commercial drones, said if no agency completes the study, it would be automatically added to the Federal Communications Commission's "Covered List."

DJI said that would mean the company "would be prevented from launching new products in the U.S. market through no fault of its own, but simply because no agency chose to take on the work of studying our products."

DJI said Chinese drones are unfairly singled out for scrutiny, saying it has "proactively submitted its products to regular independent security audits and expanded the range of built-in user privacy controls in our consumer and enterprise drones."

Autel Robotics could not immediately be reached for comment. Last year, a bipartisan group of 11 lawmakers asked the Biden administration to investigate and potentially sanction Autel, citing national security concerns.

In September, the U.S. House voted to bar new drones from DJI from operating in the U.S. The Commerce Department is considering whether to impose restrictions on Chinese drones that would effectively ban them in the U.S., similar to proposed Chinese vehicle restrictions.

In October, DJI sued the Defense Department for adding it to a list of companies allegedly working with Beijing's military, saying the designation is wrong and has caused the company significant financial harm.

© Reuters. FILE PHOTO: A drone is seen in the sky as Chinese drone maker DJI holds a demonstration to display an app that tracks a drone's registration and owner in Montreal, Canada, November 13, 2019. REUTERS/Christinne Muschi/File Photo

DJI told Reuters in October that Customs and Border Protection is stopping imports of some DJI drones from entering the United States, citing the Uyghur Forced Labor Prevention Act. No forced labor is involved at any stage of its manufacturing, DJI said.

U.S. lawmakers have repeatedly raised concerns that DJI drones pose data transmission, surveillance and national security risks, which the company rejects.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.