Big reversal! The United States lifts the ban on Shenzhen's big sales

Big reversal! The United States lifts the ban on Shenzhen's big sales

Previously , the US ban on China's DJI drones attracted widespread attention in the industry.

 

Recently, good news came that the United States lifted the ban on Chinese DJI drones!

 

 

The United States lifts the ban on DJI Innovations!

 

It is understood that the U.S. Senate Armed Services Committee ( SASC) has released the full text of the latest marked version of the National Defense Authorization Act (NDAA) for Fiscal Year 2025. It is worth noting that this version does not contain a clause prohibiting new DJI drones from entering the U.S. market.

 

(Image source: DJI official website)

 

Earlier on June 14 of this year, the U.S. House of Representatives passed the NDAA bill with a vote of 22-3, which included amendments to the Counter-China Drone Act.

 

The bill imposes further restrictions on Chinese drone manufacturer DJI Innovations, requiring it to be included in the Federal Communications Commission's restricted list, preventing DJI's new equipment from obtaining licenses from the Federal Communications Commission (FCC), and may lead to the revocation of FCC authorization for DJI's existing equipment, prohibiting DJI's future products from operating in the United States.

 

Fortunately, this ban has been lifted.

 

Before the ban was lifted, the Anti-China Drone Act had received bipartisan support in the U.S. DJI launched a series of lobbying activities to prevent the bill from being formally passed.

 

Starting from May 31 this year , DJI began to mobilize all fans on its overseas social media platforms to contact the legislature, trying to influence relevant legislators not to pass the bill.

 

According to foreign media reports, recently, representatives of drone projects from more than 6,000 public safety agencies, police and fire departments in the United States petitioned members of the U.S. Senate Armed Services Committee to oppose the inclusion of the "Countering China's Drones Act" in the "National Defense Authorization Act for Fiscal Year 2025."

 

In fact, the ban was eventually lifted. In addition to the above factors, it was also closely related to DJI's market position in the United States.

 

Because DJI drones are quite popular in the US market, DJI has an absolute leading market share in the US commercial drone market. It is reported that DJI drones have a 58% share of the US commercial drone market and are often used by US law enforcement agencies. According to AUVSI data, although they are often suppressed, Chinese drones still occupy about 92% of the US emergency response market, and police, fire departments and rescue personnel across the United States generally use DJI drones.

 

Moreover, the widespread use of DJI drones in the United States has penetrated into various fields, including infrastructure and public safety, as well as agriculture. In 2023, 50 crops on 3.7 million acres of farmland in 41 states in the United States were sprayed with pesticides by drones, most of which were manufactured by China's DJI. DJI previously stated that roughly estimated, four-fifths of the drones used by American farmers are DJI's Agras model drones.

 

(Image source: DJI official website)

 

Despite the ban, sales are booming! DJI is leading the market

 

It should be noted that although the US Senate chose to lift the ban on DJI Innovations, it does not rule out the possibility of imposing some new market restrictions on DJI Innovations in the future. It also does not rule out the possibility of re-introducing the ban in the final bill. The reason is that the United States has been frequently suppressing DJI Innovations for a long time.

 

 

In 2016, some U.S. lawmakers submitted a proposal to Congress to restrict DJI on the grounds of "cyber data security."

 

In 2017, the United States officially launched an investigation into DJI, and the U.S. Department of Defense included it in the sanctions list.

 

In May 2018, the U.S. Department of Defense's Army Department required all subordinate units to stop purchasing and using DJI products and banned all DJI drone products.

 

In May 2019, the US government once again banned US federal agencies from purchasing drones made in countries identified as "security threats" and banned the use of federal funds to purchase DJI drones. The US Department of Commerce put DJI on the trade blacklist and imposed tariffs on DJI's imported products.

 

In December 2020, the U.S. Department of Commerce added 59 Chinese companies and individuals, including DJI, to the "Entity List" on the grounds of "endangering U.S. national security", prohibiting U.S. companies from exporting technology to them.

 

In December 2021, the U.S. Department of Commerce added DJI Innovations to the trade blacklist. Later, the United States again announced that it would add eight Chinese companies, including DJI Innovations, to the investment blacklist.

 

Although the United States has continued to increase restrictions and sanctions on DJI Innovations, each sanction actually does not have much impact on DJI, because the United States and other allies simply cannot find alternative products to DJI drones in a short period of time.

 

There were also drone manufacturers who planned to take advantage of the opportunity to seize part of the market share, but due to their backward technology, it had no impact on DJI's market position.

 

Shenzhen DJI Innovations Technology Co., Ltd. was founded in 2006. With its innovative products, it has become the world's largest consumer drone manufacturer, with customers in more than 100 countries around the world.

 

DJI currently controls more than 70% of the global drone market share and has a strong technological lead in this field.

 

In the field of drones, DJI has accumulated more than 5,000 core patents and has a great advantage in technology research and development.

 

In terms of the drone's core flight control system, DJI's self-developed flight control algorithm, real-time operating system, navigation algorithm and other technologies play a vital role in the stability, accuracy and safety of the drone.

 

In addition, DJI's flight control system integrates multiple sensors such as gyroscopes, accelerometers, magnetic compasses, barometers, GNSS modules, etc. These sensors can measure physical quantities related to the aircraft's motion state, and perform data processing and analysis to achieve precise control of the aircraft's attitude and position, such as automatic return, obstacle avoidance, following, gesture control, etc.

 

These diverse functions not only improve the user experience, but also enhance the application capabilities of drones in complex environments.

 

With its strong product power and unique advantages, DJI's sales performance has doubled.

 

From 2013 to 2017, in just four years, DJI's revenue soared from 820 million to 17.57 billion, and in 2020 it achieved revenue of 26 billion.

 

In 2022, DJI's revenue reached 30.14 billion yuan, and sales revenue continued to grow in 2023.

 

Although the United States has repeatedly proposed to ban DJI, DJI still maintains a strong market position in certain key areas of the United States. However, this does not mean that DJI can sit back and relax in the future. DJI still needs to continue to innovate in technology to maintain its market leadership. In the current market environment, other competitors are also actively developing new technologies and new products to compete for market share.


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