DJI Added to Commerce Department Entity List

In response to multiple reports indicating the U.S. government’s intention to restrict DJI’s operations, the Department of Commerce is now including the leading drone manufacturer on its “Entity List,” as announced today. Initial reports from Reuters and Drone DJ stem from a briefing with a government representative. A complete listing of the 77 organizations affected can be found here.

This development represents a significant setback for DJI. The Chinese firm, established 14 years ago, has achieved a commanding position within the drone industry. Within the United States, the company currently holds an estimated 77% of the market share.

Growing friction in U.S.-China relations has long presented a potential challenge to DJI’s continued operations in the U.S., particularly concerning its surveillance features. Beyond its popular consumer drones, DJI also provides solutions for industrial and governmental sectors. The company even maintains a dedicated product line specifically designed for government use as part of its enterprise portfolio.

DJI is among a number of companies added to the list, which also includes semiconductor manufacturer SMIC. Commerce Secretary Wilbur Ross issued a firm statement following the public release of the list:

Last year, the Department of Commerce added Huawei and its subsidiaries to this same list, a decision that has substantially limited the technology company’s capabilities. This action, among other consequences, restricted the company’s access to essential U.S. technologies, such as Google’s Android operating system and other software. Huawei has since been working to develop its own operating system, but its implementation has proven challenging.

Discussions have been ongoing regarding limitations on the use of the company’s technology by both federal and state agencies, but this recent action could have a broader impact. DJI has anticipated a potential announcement of this nature for over a year and has invested considerable effort in lobbying activities on Capitol Hill. Speculation regarding the specifics of these restrictions has been prevalent, particularly with the upcoming presidential inauguration on January 20.

Notably, DJI was identified in connection with the report’s focus on “wide-scale human rights abuse.” This likely pertains to concerns surrounding “high-technology surveillance” capabilities:

We have contacted DJI for a statement.

Rival company Skydio has issued the following response to today’s announcement: