DJI, which is the biggest drone manufacturer in the world, has been blacklisted by the U.S. Defense Department, due to a claimed ties to the Chinese military. DJI says it will challenge this ban. Read the responses below.

DJI: Top drone maker

DJI held the title of top drone maker as of March 2021. According to sales volume, the enterprise held a 76 percent market share, followed by Intel, which held ‘only’ a four percent market share. Although DJI is best known for its consumer drones, the business also sells industrial drones for public safety, infrastructure, power line inspection, farming, and other uses. DJI is recognized as a fast-paced company that innovates more than any other tech company in its field. The recently announced Avata and DJI FPV are among the groundbreaking devices that allow the privilege of capturing outstanding imagery with a steep learning curve. These products, among other DJI drones, have been open-up the market for all types of filmmakers and content creators. However, the U.S decision to blacklist DJI might harm and hit DJI’s market share in the United States.

DJI is among the 13 firms added to the blacklist released by the Pentagon on Wednesday.

US puts DJI on military ties blacklist

DJI is among the 13 firms added to the blacklist released by the Pentagon on Wednesday. “The Department is determined to highlight and counter the People’s Republic of China’s (PRC) Military-Civil Fusion strategy, which supports the modernization goals of the People’s Liberation Army by ensuring its access to advanced technologies and expertise are acquired and developed by PRC companies, universities, and research programs that appear to be civilian entities”, the Pentagon said in a statement. That means, there’s a clear pathway and green light for heavy sanctions against DJI because it grants the US president authority to impose sanctions against companies deemed to have connections to the Chinese military.

The DoD listing confirms the US government firmly considers DJI to be a contributor to the People’s Republic of China (PCR) military.

Charles Rollet – analyst at IPVM

Warning to investors to steer clear of DJI

Charles Rollet, an analyst at Pennsylvania-based surveillance research group IPVM, said to Al Jazeera that the move against DJI was a warning to investors to steer clear of the company. “DJI had already been added by the US Treasury to the Non-SDN Chinese Military-Industrial Complex Companies list in December 2021, barring US investment into the firm. So the DoD listing confirms the US government firmly considers DJI to be a contributor to the People’s Republic of China (PCR) military”. Rollet emphasized.

DJI has never designed or manufactured military-grade equipment and has never marketed or sold its products for military use in any country.

DJI spokesman Adam Lisberg

DJI: “We are not a military company in China”

DJI spokesman Adam Lisberg stated: “There is no reason why DJI has been added to the Defense Department’s list of ‘Chinese military companies…DJI does not fall under any categories set by the law to be included on the list. DJI is not a military company in China, the United States, or anywhere else. DJI has never designed or manufactured military-grade equipment and has never marketed or sold its products for military use in any country. Instead, we have always developed products to benefit society and save lives. We stand ready to formally challenge our inclusion on the list”.

Wrapping up

The inclusion of DJI in the U.S blacklist can be a major problem for marketing and servicing DJI’s products in the United States. It can cause limitations on flighting authorizations as well. It will be interesting to see how DJI is going to challenge this, however, it’s going to be a very challenging challenge.