U.S. gov adds DJI to Commerce blacklist over ties to government in China

Clout

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Dec 18, 2020

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DJI — one of the largest and most popular drone companies in the world — has been added to the US Department of Commerce’s Entity List, designating the Chinese company as a national security concern and banning US-based companies from exporting technology to the company.

DroneDJ first reported the news, which was confirmed by Reuters based on a conference call with a senior commerce official. The Department of Commerce did not immediately respond to a request for further details. DJI declined to comment.

The ban was put in place through the same mechanism as the US government’s ongoing ban on Huawei products, and is primarily focused on blocking the export of US technology to the drone-maker. As such, the ban will make it difficult for US businesses to provide parts or components for DJI to use in its drones, which is likely to disrupt the company’s supply chain. It may also make it difficult for US stores to directly sell DJI products or transact with the company, particularly if China responds to the action with further restrictions.