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New Drone Advocacy Alliance Fights Against Bans on Chinese-Made Drone Technology

DJI Inspire 3, drone advocacy allianceThe newly formed Drone Advocacy Alliance will fight against bans on Chinese-made drone technology.

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The formation of the Drone Advocacy Alliance was announced today.  The Alliance is “a coalition dedicated to protecting the right of American drone users to choose and use their drones,” says a press release. “The Alliance will serve as a platform for drone users to learn more about legislation that may impact them and make their voices heard.” From the Alliance website:

The Drone Advocacy Alliance is a non-partisan, drone-agnostic grassroots advocacy coalition. Formed at a time when proposed drone market access restrictions at the state and federal level could upend the burgeoning drone ecosystem, the Alliance works to ensure that drone users are able to weigh in on policies that could impact their ability to use and choose the best drones for their operational needs.

Initial partners in the Drone Advocacy Alliance represent a wide variety of drone industry stakeholders, including Blue Nose Aerial Imaging, DJI, Dronelink, DroneSense, the Drone Service Providers Alliance (DSPA), the Pilot Institute and the Uncrewed Trade Alliance.  China-based DJI is the world’s largest drone manufacturer, with a US market share estimated between 60 – 75%.

The Drone Advocacy Alliance will respond to U.S. government proposals to limit Chinese-made drone technology. “These proposals threaten to upend the American drone ecosystem, including software providers, resellers, distributors and countless end-users who have incorporated drones into their work. If enacted, these measures could impact everyone from consumers, to American small businesses using drones in nearly every industry across the economy, to researchers collecting data to help us better understand our world, to public safety agencies protecting their communities,” says the release.

Right now, the Drone Advocacy Alliance specifically helps stakeholders to send emails and communicate with lawmakers concerning two current proposals: the American Security Drone Act (read the bill here) and the Countering CCP Drones Act (read the Act here.)

The American Security Drone Act and the Countering CCP Drones Act

U.S. government agencies seek to eliminate global supply chain threats and strengthen domestic production throughout the defense ecosystem, including drones.  To that end, government entities have provided significant funding to U.S. manufacturers to develop new capabilities and to expand production capacity.  At the same time, in the current geopolitical climate lawmakers have continued to try to limit dependence upon Chinese-made technology throughout the communications and industrial ecosystem.  These efforts are sometimes referred to as the “Huawei effect” after the telecom giant faced scrutiny over numerous claims of intellectual property theft and cybersecurity threats.

The American Security Drone Act of 2023 broadly limits government purchase of drones “manufactured or assembled by certain foreign entities, including entities subject to influence or control by China, with exceptions…The ban includes associated elements that enable the operator to operate the aircraft in the national airspace system.” In addition, the American Security Drone Act would require government agencies to account for any existing fleet of drones “manufactured or assembled” in a “covered foreign entity.”

The Countering CCP Drones Act takes direct aim at DJI.  From the summary of the Act:

This bill requires the inclusion of telecommunications and video surveillance equipment or services produced or provided by Shenzhen Da-Jiang Innovations Sciences and Technologies Company Limited (a Chinese drone maker commonly known as DJI Technologies) on a list of communications equipment or services determined by the Federal Communications Commission (FCC) to pose an unacceptable risk to U.S. national security. Current law prohibits the use of federal funding available through specified FCC programs for purchasing or maintaining listed equipment or services.

While the direct effect of the addition to the FCC list may be relatively inconsequential, the designation of DJI equipment as posing “an unacceptable risk to U.S. national security” could be used by other entities to justify the creation of additional bans or limitations on the use of DJI products.

Why Do Government Policies Matter to the Commercial Industry?

DJI is the largest drone manufacturer in the world, with a wide variety of mature models on the market.  Founded in 2006, DJI is supported by more than 14,000 employees and 15 years of technology development: and are able to offer commercial platforms at a lower price point than many competitors.  DJI does not specifically market to government entities, but many state and local agencies, including law enforcement and fire departments, established their programs with DJI products.

Government attempts to ban China-made drone technology have trickled down to the state and local level, with several states enacting their own rules.  These generally unfunded state-level laws have placed public safety drone programs in a difficult position, forcing them to change operations, replace hardware and provide new training to personnel.   In 2022, 95% of Florida law enforcement agencies surveyed  responded that the proposed Florida ban would have a negative impact on their programs in the near term.

In addition, some commercial programs have also adopted unofficial bans on Chinese drone technology, forcing service providers to purchase new hardware or abandon long term clients.

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