China demands ‘fairness’ as US bans new drones from DJI, others

China’s Foreign Ministry on Tuesday urged the United States to end its ban on approval of all new foreign-made drone systems and “provide fairness” to companies such as DJI, after the Trump administration introduced new rules this week.

The U.S. Federal Communications Commission (FCC) said on Monday it would add China’s DJI, Autel and all foreign-made drones and parts to a new “covered list” deemed to pose an unacceptable risk to U.S. national security.

Being included on the list means that foreign drone companies such as DJI and Autel will not be able to obtain FCC approval to sell new models of drones or key components in the United States, which is necessary. The agency also said it would ban approval of new foreign-made drones for import or sale in the United States.

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However, the FCC’s designation does not prohibit the import, sale or use of any existing device model previously authorized by the telecommunications regulator, nor does it affect any previously purchased drones, the FCC said. It added that consumers can continue to use any drones they previously purchased legally.

Still, the move represents a major escalation in Washington’s battle against Chinese drones in recent years. This will have the most serious impact on China’s DJI, the world’s largest drone maker by share of the global drone market. estimated 80% of commercial drones are sold in the United States.

China’s foreign and commerce ministries both condemned the new rules on Tuesday, with the commerce ministry saying it opposed “discriminatory lists.” The ministry vowed to take measures to protect the rights and interests of Chinese companies.

DJI said it was disappointed with the FCC’s decision. “While DJI was not named, it did not disclose what information the administration used in making its decision,” the company said.

The company said earlier this month that “more than 80% of the more than 1,800 state and local law enforcement and emergency response agencies nationwide with drone programs use DJI technology; these programs will be immediately at risk if they no longer have access to the most cost-effective and efficient drone technology.”

long term plan

DJI has previously said being added to the covered list would effectively ban it from offering new drone models in the United States.

Chinese Foreign Ministry spokesman Lin Jian said on Tuesday that China opposed the United States’ “overly broad interpretation of the concept of national security” and the establishment of a “discriminatory” list. He urged Washington to “correct wrong practices” and provide a fair environment for Chinese companies.

The Federal Communications Commission said it received on Sunday the results of an interagency review of foreign drone risks convened by the White House that found imported drones and parts pose a security risk “given unauthorized surveillance, leaks of sensitive data, supply chain vulnerabilities and other potential threats to the U.S. homeland.”

The Pentagon may determine in the future that specific drones or categories of drones do not pose a risk and remove them from restrictions, the review said.

This week’s ban is the culmination of Trump’s long push — from back from his first term ——Prevent the flow of Chinese-made drones into the United States.

Trump pushed for the move again this year, signing an executive order aimed at reducing U.S. reliance on Chinese drone companies. Three months later, in September, the U.S. Commerce Department said it planned to issue rules to restrict Chinese drone imports.

Olympic Games, FIFA Focus

Sebastian Gorka, senior director for counterterrorism at the National Security Council, said the action was part of an effort to ensure the drones were manufactured in the United States. “Drones are a critical component of America’s future security. They must be made in the United States,” he wrote on Monday.

Both Trump and the FCC cited the upcoming Olympics and FIFA World Cup and concerns about drone misuse.

Republican Rep. Rick Crawford praised the decision, saying “the use of Chinese-made drones with widespread access to U.S. airspace has been a counterintelligence nightmare for years… We cannot sacrifice our national security in exchange for a flood of cheap goods flooding the U.S. market.”

At the same time, Chinese companies can resort to legal measures to try to overturn the ban.

Chinese manufacturer Hikvision filed a lawsuit earlier this month with the U.S. Court of Appeals for the District of Columbia, challenging the FCC’s decision to block new approvals of devices using parts from companies on its covered list and allow the agency to ban previously approved devices in certain circumstances.

In September, DJI also appealed to the U.S. court, requesting that it be removed from the U.S. Department of Defense list A company allegedly working with Beijing’s military. A U.S. judge rejected the bid.

  • Reuters, with additional editing and input by Vishakha Saxena

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Visakha Saxena

Vishakha Saxena is Asia Finance’s multimedia and social media editor. She has been a digital journalist since 2013 and is an experienced writer and multimedia producer. As a trader and investor, she is interested in the new economy, emerging markets, and the intersection of finance and society. You can write to her: [email protected]

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