The Core of US-China Conflict is Data... DJI Likely to Become the Second Huawei

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Amid the intense US-China science and technology hegemony war, an analysis has emerged that China's largest drone company DJI could become the 'second Huawei.'

Bloomberg News reported on the 19th (local time) that "Although the US Treasury Department has included DJI on the investment blacklist, this may be just the beginning." Concerns are growing within the US government that information collected by DJI drones could flow to Chinese intelligence agencies, potentially leading to increased sanctions against DJI.

Prior to this measure, the US government had already imposed sanctions on DJI twice. In 2019, the Trump administration banned the military purchase of Chinese drones and components, and in 2020, the Department of Commerce included DJI on the sanctions list prohibiting the use of American company parts.

According to the Federal Communications Commission (FCC) announcement in October, DJI holds over 50% of the US drone market share. Bloomberg News stated, "At the center of the strategic competition between the US and China is a 'data war,' and with DJI's high market dominance in the US, the US government's concerns are growing."

Some suspect that various sensitive information collected by DJI drone users is flowing to Chinese intelligence agencies. There is increasing concern that if an adversary obtains and analyzes personal information collected and transmitted by various everyday products?from cars to yoga mats?it could pose a national security threat.

For this reason, voices calling for stronger sanctions against DJI are emerging. Republican Senators Tom Cotton and Marco Rubio have introduced a bill banning federal agencies from purchasing DJI drones, and Senate Majority Leader Chuck Schumer of the Democratic Party has proposed a separate bill with similar content.

Brendan Carr, FCC Commissioner, referred to DJI as the "Huawei of the skies" last October, stating, "DJI's software app collects vast amounts of personal information from drone operators, which can be used by Chinese authorities. The FCC urged a review of measures to ban the approval of DJI products."