US bars approvals of new models of DJI, all other foreign drones

By David Shepardson WASHINGTON, Dec 22 (Reuters) – The Federal Communications Commission said on Monday it is adding China's DJI, Autel and all foreign-made drones and components to a list of companies determined to pose unacceptable risks to U.S. national security and will bar approvals of new types of drones for import or sale in the United States. The addition to the FCC's "Covered List" means that going forward, DJI, Autel and other foreign drone companies will not be able to obtain FCC approval to sell new models of drones or critical components in the United States, which is required. The move is a significant escalation in Washington's battles to crack down on Chinese drones in recent years. In September, the Commerce Department said it plans to issue rules to restrict Chinese drone imports. The FCC designation does not prohibit the import, sale or use of any existing device models the telecom regulator previously authorized, and does not impact any previously purchased drones, the FCC said. It added that consumers can continue to use any drones they previously purchased legally. DJI, the world's largest dronemaker, said it was disappointed by the FCC decision to add foreign-made drones to the Covered List. "While DJI was not singled out, no information has been released regarding what information was used by the Executive Branch in reaching its determination," the company said. DJI previously said that being added to the Covered List would effectively ban it from offering new drone models in the United States. The company sells more than half of U.S. commercial drones. The FCC said it received the results of a White House-convened, executive-branch interagency review of the risks of foreign drones on Sunday, which found that imported drones and components pose security risks "given the threats from unauthorized surveillance, sensitive data exfiltration, supply chain vulnerabilities, and other potential threats to the homeland." The review said the Pentagon could make future determinations that specific drones or classes of drone do not pose risks and remove them from the restrictions. In June, President Donald Trump signed an executive order that aims to reduce U.S. reliance on Chinese drone companies. Sebastian Gorka, senior director of counterterrorism at the National Security Council, said the action was part of ensuring that drones are made in the United States. "Drones are a large part of America’s future security. They must be made in the USA," he wrote on X Monday. DJI said earlier this month that "more than 80% of the nation’s 1,800+ state and local law enforcement and emergency response agencies that operate drone programs use DJI technology; these programs will be at immediate risk if they no longer have access to the most cost effective and efficient drone technology available." Trump and the FCC both cited the upcoming Olympics and the World Cup and concerns about drone misuse. Republican Representative Rick Crawford praised the decision, saying "the use of Chinese-made drones, with widespread access over the U.S. airspace, has been a counterintelligence nightmare for years … we cannot compromise our national security in exchange for cheap goods intended to flood the U.S. market." Chinese manufacturer Hikvision filed suit in the U.S. Court of Appeals for the District of Columbia earlier this month, challenging the FCC decision to block new approvals for devices with parts from companies on its Covered List and let the agency bar previously approved equipment in some instances. In September, a U.S. judge rejected a bid by DJI to be removed from the U.S. Defense Department’s list of companies allegedly working with Beijing’s military. (Reporting by David Shepardson in Washington; Editing by Chris Reese and Matthew Lewis)

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