US moves to break Chinese drone giant’s hold on American market

The world’s largest drone manufacturer is scrambling to avoid a looming ban from the American market that could take effect in fewer than 100 days.

Chinese drone giant DJI must undergo a government audit of its technology before December 23 to comply with the US defence budget passed last year. The requirement applies to DJI as well as fellow Chinese firm Autel Robotics. However, according to Nikkei Asia, DJI’s repeated requests to begin the mandated security review have so far gone unanswered.

Adam Welsh, DJI’s head of government affairs, said he has travelled from Australia to Washington in an effort to set up meetings with five US national security agencies, but “none yielded results.” The Shenzhen-based company also sent two letters, in March and July, to agencies including the Defense Department, but the response has been “largely muted,” Welsh added.

“We’re still seeking to find ways to address that, and part of it is the transition year,” he said, referring to the new Trump administration taking office in January. “But also I think part of it is that there’s a lot of work going on inside the government, and so we’re just not high up on their roster at this point.”

DJI dominates the global civilian drone industry with an estimated 70% market share worldwide and roughly 80% in the US. Its drones are widely used by filmmakers, farmers, construction workers, and especially emergency responders, with the article citing research that shows that nine out of ten drones used by US public safety agencies in 2020 were made by DJI. Users often cite the company’s products as cheaper and easier to operate than American competitors’.

Under the new restrictions, only new DJI models would be barred from receiving Federal Communications Commission licenses. Existing drones already in the US would remain operational, but the brand would gradually fade as older models became obsolete.

David Benowitz, head of market research firm DroneAnalyst and marketing lead at Seattle-based BRINC Drones, said DJI currently faces little competition in the consumer drone market, though American-made commercial drones are starting to catch up. “Government agencies are adding in these new US products that are more designed for purpose, but they’re a little bit more expensive as well,” Benowitz said. “So there’s a trade-off there as well.”

DJI has increasingly become a US national security target in recent years, facing bipartisan scrutiny over alleged ties to Beijing’s security apparatus. Congress has pushed legislation to impose higher tariffs on Chinese-made drones, while the Pentagon placed DJI on a list of entities accused of working with China’s military. DJI, one of eight Chinese firms added three years ago, is currently suing the Defense Department to be removed from that list.

The US government has also moved against DJI on another front. Since October 2024, Customs and Border Protection has blocked imports of DJI products under the Uyghur Forced Labor Protection Act, which bans goods suspected of being made with forced labour in Xinjiang. DJI denies the allegations and has suspended shipments to the US while working with customs officials. The move has further depleted supplies of DJI drones in the American market.

By Nazrin Sadigova