The US Department of Defense (DoD) has blacklisted Shenzhen-based DJI Technology Co., the world's largest consumer drone maker, due to its alleged links to the Chinese military.
The blacklist also includes an array of other high-tech companies affiliated with DJI, including BGI Genomics, China’s largest genomics firm, and the China State Construction Group, an infrastructure giant.
The DoD said in a statement that it “is determined to highlight and counter the […] military-civil fusion strategy, which supports the modernization goals of the [Chinese] People’s Liberation Army (PLA) by ensuring its access to advanced technologies and expertise are acquired and developed by PRC [People’s Republic of China] companies, universities and research programs that appear to be civilian entities.”
The statement comes after Washington introduced a spate of restrictions on US business ties to Chinese companies amid concerns that such relations may ultimately support the PLA’s growth and modernization.
In December 2020, the US Department of Commerce (DoC) placed DJI on its “Entity List,” requiring would-be US business partners to obtain a special license before doing business with DJI.
The decision was followed by the US Department of the Interior (DoI) in June 2021 clearing DJI drones for government use after a lengthy audit. A few weeks later, the Pentagon said the drones “pose potential threats to national security,” calling the DoI’s decision “unauthorized” as well as “inaccurate and uncoordinated”.
Commenting on the DoC's move, DJI officials argued that the company has "little to do with security" and is "instead part of a politically-motivated agenda to reduce market competition and support domestically produced drone technology.”
Washington made similar national security-related allegations about other Chinese tech giants, including phone maker and internet provider Huawei, effectively protecting the US market from competition with Chinese products.