DJI, the world’s leading drone manufacturer, has made it clear that it has no intention of abandoning the US market, despite escalating political tensions and potential legislative challenges. During a recent Reddit AMA, Adam Welsh, DJI’s global head of policy, addressed concerns about the company's future in the US, providing insights into its response to potential bans, data security fears, and manufacturing shifts.
No Plans to Exit the US Market
In response to the critical question of whether DJI would leave the US if new legislation passed, Welsh gave a firm "no." Despite the looming threat of the Countering CCP Drones Act, which could put DJI on the Federal Communications Commission’s (FCC) Covered List and block future drone certifications, the company remains steadfast. Welsh explained that while current drone fleets would remain unaffected for the time being, retroactive legislation could impact even those already purchased. DJI is actively lobbying to prevent such restrictions but is prepared to reevaluate its strategy if necessary.
Data Security at the Forefront
One of the major concerns discussed in the AMA revolved around data security, particularly fears that DJI drones could transmit information to the Chinese government. Welsh was unequivocal in his response, stating that US customer data is stored exclusively on US-based servers. He also stressed that DJI has never been asked to share data under China’s National Intelligence Law and only complies with legal data requests from governments when they meet specific legal requirements.
Welsh also addressed the broader issue of data privacy in the drone industry. He advocated for the creation of objective data security standards, pointing out that “blunt tools” like Country of Origin bans do not necessarily ensure better security. In his view, the solution lies in industry-wide standards that apply to all manufacturers, regardless of their origin.
Challenges of US-Based Manufacturing
The possibility of DJI moving some of its manufacturing to the US to address security concerns was another key topic. Welsh revealed that the company has explored this option, including setting up US-based servers, but cautioned that such a move would come with high costs that would likely be passed on to customers. He noted that while this might appease some segments of the US government, it wouldn’t guarantee that DJI would escape future legislative hurdles.
“The US government is many-headed,” Welsh remarked. “We might appease some parts, but not all.” This uncertainty has led DJI to weigh the benefits and drawbacks of such an expensive shift.
Combatting Misinformation
In response to claims that DJI shared real-time drone GPS data with the Chinese government during the Ukraine conflict, Welsh categorically denied the allegations. He clarified that DJI had suspended all sales to both Russia and Ukraine and reiterated the company’s ethical stance that its drones should only be used for good.
Focus on Innovation and Compliance
As the drone industry grapples with evolving security concerns, Welsh emphasized DJI’s ongoing commitment to innovation and compliance with US regulations. The company has introduced initiatives like security audits, new privacy controls, and a Bug Bounty program that rewards users for identifying vulnerabilities in DJI’s systems.
Welsh also expressed the company’s willingness to work with US lawmakers to establish clearer, objective data security standards. “Without these standards,” he warned, “Congress will continue to reach for broad, ineffective solutions like Country of Origin bans, which harm the entire industry.”
Commitment to the Future
Despite the current climate of distrust between the US and China, DJI remains resolute in its mission to maintain a strong presence in the US. The company has no plans to abandon its American customer base and will continue advocating for its right to operate in the market. Welsh concluded by reaffirming DJI’s commitment to protecting user privacy, advancing drone technology, and fostering regulatory compliance.
As the regulatory landscape continues to evolve, DJI faces significant challenges, but its dedication to innovation and collaboration with lawmakers positions it to remain a key player in the US drone market.