U.S. lawmakers in both the House and Senate are advancing legislation to ban Chinese-made drones from the U.S. market due to concerns over data security and national security risks. Despite this, major Chinese drone manufacturers are maneuvering to maintain their presence in the U.S.
DJI, one of China's leading drone makers, has partnered with U.S.-based Anzu Robotics to license its technology for sale in America. Similarly, Hong Kong-based Cogito Tech Company Limited registered with the FCC in August 2023 to sell its drones in the U.S. Experts note that Cogito’s Specta Air and Specta Mini drones are almost identical to DJI's products.
China’s dominant drone companies appear to be taking steps to ensure their products reach U.S. consumers even if Congress passes a ban, similar to the one recently enacted against TikTok. DJI currently holds about 70% of the global commercial drone market and 80% of the U.S. market.
Data Security Concerns
Derek Scissors, a senior fellow at the American Enterprise Institute, highlighted the risks associated with Chinese drones, emphasizing that data collected during flights could be sensitive. “If U.S. government offices are buying them, you definitely could get something useful,” Scissors said. “U.S. government offices should not be using Chinese drones.”
Seven U.S. states have already banned state agencies, including law enforcement, from using Chinese-made drones. The Defense Department is also prohibited by legislation from purchasing Chinese drones due to concerns about their links to the Chinese Communist Party and military.
Legislative Efforts
Rep. Elise Stefanik (R-N.Y.) has sponsored the Countering CCP Drones Act, which would add DJI to the FCC's covered list, effectively banning it from operating in the U.S. by restricting its use of U.S. communications infrastructure. The bill has passed the House Energy and Commerce Committee. Stefanik is also behind the Drones for First Responders Act, which proposes tariffs on Chinese drones, starting at 30% and increasing annually, with a goal of eliminating Chinese components in drones imported to the U.S. by 2030.
Sen. Marco Rubio (R-Fla.), vice chair of the Senate Intelligence Committee, supports broad targeting of Chinese drones and affiliates. “Any drone affiliated with the Chinese Communist Party should be on the Federal Communications Commission Covered List, regardless of which brand name it is sold under,” Rubio said in a statement.
Industry Response
DJI, in a statement to The Hill, did not confirm connections with Cogito or Anzu but mentioned frequent collaboration requests. Anzu Robotics founder Randall Warnas detailed discussions with DJI about a licensing venture aimed at adapting to market changes. Warnas emphasized that Anzu’s drones are manufactured independently, despite using DJI technology.
Impact on Consumers and First Responders
Jack Towne, a drone influencer, argued that banning DJI would negatively affect consumers and first responders who rely on affordable commercial drones. “There just aren’t good alternatives,” he said. “They’ve already handicapped first responders, police officers, and firefighters.”
Anzu Robotics claims its drones' data is encrypted and verified by U.S.-based cybersecurity firm White Knight Labs. The drones operate on U.S. servers despite being manufactured abroad.
Future of U.S. Drone Industry
Stefanik’s legislation aims to bolster the U.S. drone industry by providing grants for secure drones. However, Warnas and others argue against a blanket ban, suggesting it stifles competition. Michael Robbins, president and CEO of the Association for Uncrewed Vehicle Systems International, acknowledged the national security threats posed by Chinese drones but called for a balanced approach to support the U.S. industry.
DJI's Licensing Strategy
Under the DJI-Anzu agreement, Anzu assembles drones in Malaysia using DJI technology. Warnas likened the process to buying a recipe and cooking independently. He asserted that Anzu operates as an independent entity licensing DJI technology.
Cogito's Denial of DJI Connection
Cogito has denied any link to DJI, despite similarities in drone specifications. Experts believe the Specta drones use unique DJI chipsets, suggesting a technological connection.