China Committee Calls out Texas Drone Firm as PRC Front

Heads of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party called on the Commerce Department to explain what steps and authorities are needed to address the "white label" resale of drones made by Chinese maker DJI by Hong Kong and Texas firms,

More than half of all drones sold in the U.S. are made by DJI, and they are the most popular drone used by public safety agencies.

Committee Chair John Moolenaar (R-MI) and Raja Krishnamoorthi (D-CA)  Ranking Member also wrote Anzu Robotics CEO Randall Warnas to account for the Texas firm's role as a "passthrough company in an attempt to avoid current and anticipated U.S. restrictions on DJI products."

"Even more disturbingly," the lawmakers contineud, "we found that Anzu’s CEO admitted in a recent interview that the primary purpose of the DJI-Anzu relationship was to circumvent growing U.S. legislative restrictions on DJI products.”

Anzu and Hong Kong- based Cogito sell drones that by all appearences are DJI products, painted green.

According to the Committee, DJI’s partnership with these companies came to light shortly after a congressional committee unanimously voted out legislation that would add DJI (or any subsidiary or affiliate  thereof) to the Federal Communications Commission’s (FCC’s) Covered List, resulting in new models of DJI drones being prohibited from operating on U.S. communications infrastructure.

PRC Drone Export Controls

China has adjusted its export control measures on unmanned aerial vehicles (UAVs), the Ministry of Commerce (MOC) announced.  The adjustment includes the revision of management standards for certain important components of UAVs, such as infrared thermal-imaging devices and target-indicating lasers, according to an MOC statement released July 31.

Additionally, high-precision inertial-measurement equipment will be included within the scope of control, while temporary controls on specific consumer-grade drones will be lifted.

Furthermore, the adjustment prohibits the export of all civilian drones that are not subject to export controls but are for use in the proliferation of weapons of mass destruction, terrorist activities or military purposes.

This is an update to China's UAV export control measures that have been in place for a year, according to the MOC. 

Legislative Initiatives

The Countering CCP Drones Act, which would require the FCC to add DJI to the FCC Covered List, thereby prohibiting future models of DJI drones from operating on U.S. communications infrastructure, is currently before Congress.

Drones for First Responders (DFR) Act will  implement a new 30% tariff on drones from China; increase those taxes by 10% annually; and ban imports of drones containing Chinese-made components by 2030.    Currently, 90% of drones operated by U.S. first responders are made in the People’s Republic of China (PRC) according to the legislation's sponsors.

Click HERE to read the lawmakers’ letter to Anzu.

Click HERE to read the lawmakers’ letter to Secretary Raimondo.