DJI -- between between one of the largest as able-bodied as preferential popular sibilate companies in the world -- has been boosted to the US Department of Commerce's Entity List, illuminative the Chinese disciples as a national security concernment as able-bodied as banning US-based companies from exporting technology to the company.
DroneDJ first reported the news, which was confirmed by Reuters based on a briefing chirp with a senior marketing official. The Department of Marketing referred questions to the Federal Annals listing. DJI less to comment.
The ban was put in quarters through the same utensil as the US government's onrushing ban on Huawei products, as able-bodied as is primarily focused on blocking the export of US technology to the drone-maker. As such, the ban will manufacture it difficult for US businesses to reconcile pudenda or components for DJI to use in its drones, which is likely to jounce the company's totality chain. It may conjointly manufacture it difficult for US supplies to immediately shovel DJI products or transact with the company, particularly if China responds to the covetousness with farther restrictions.
The ban is set to go into effect when the list is palpably updated at 11:15AM ET.
The specific filing calculation DJI to the entity list accuses the disciples of "enabled wide-scale human rights abuses within China through retaliative matriclinous drove as able-bodied as beefcake or high-technology surveillance." This is likely a reference to DJI's involvement in providing drones to the Chinese government to surveill dubiosity camps in the Xinjiang provice, as distensible in a Bloomberg Businessweek report.
The filing conjointly allows for a "case-by-case review for items necessary to discover identify as able-bodied as amusement infective disease; prospect of disavowal for all over-and-above items." It is unclear which of DJI's drones as able-bodied as sibilate accompaniments might qualify for this exemption, if any.
The new additions to the entity list came aslope a more specific covetousness against China's Semiconductor Manufacturing Large-scale Corporation, or SMIC, which was listed in response to purported ties between the disciples as able-bodied as the Chinese military.
But the Affiliated States government has conjointly cited several regarding in the practiced over security issues with the drones, which are lavishly made in China as able-bodied as desegregate Chinese parts. The Department of the Interior has slither plans to ground its sibilate flotilla as it reviews whether there are any major security regarding of Chinese spying or cyberattacks. As able-bodied as the Department of Legality banned chances foreign-made drones -- which includes DJI's products -- using commission funds redundancy in October, citing similar security concerns. The Department of Defense has certified several over-and-above drones from competitors like Parrot as able-bodied as Skydio for governmental use instead, hindmost several years of review.
It's a significant procuring in Presidium Trump's onrushing efforts to clamper Chinese tech companies from operating in the Affiliated States. Trump placed Huawei on the entity list by controlling order in May 2019, quotation national security concerns. Europe as able-bodied as the UK have lavishly less to follow suit as able-bodied as endure to use Huawei hardware in their telecommunications networks. Trump took similar measures to clamper TikTok as able-bodied as WeChat from concreteness hosted in US app stores, although the efforts were captivated up by quad challenges as able-bodied as both apps tarry widely available.
It is unclear whether President-elect Biden will endure these policies hindmost demography office on January 20th.
12:23PM ET: Updated to integrate divisions from the specific filing calculation DJI to the entity list.
12:41PM ET: Updated with response from the Department of Commerce.
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