China’s DJI—the global titan of the consumer drone industry—is suing the U.S. Federal Communications Commission (FCC) over the agency’s decision to throttle its American business.
DJI last week filed a petition for review in the U.S. Ninth Circuit court, contesting the FCC’s move to add foreign drone manufacturers to its Covered List—a federal blacklist that effectively bans the sale or import of the company’s drones and components—for national security reasons.
Should DJI prevail, American customers will once again be able to take advantage of the company’s wildly popular products. Despite their low cost, the drones are considered by pilots to be among the highest quality on the market. In 2020, DJI’s market share among U.S. hobbyists and public safety operators was estimated as high as 77 and 90 percent, respectively.
The FCC’s ban can be traced back to the fiscal year 2025 National Defense Authorization Act (NDAA), which called for a national security audit of all foreign drones by December 23. According to DJI, the audit was never completed. The NDAA mandated that in that scenario, DJI and others must be automatically added to the covered list without a formal review.
The company said it made repeated efforts to get the audit process rolling, to no avail.
“The decision to list DJI’s products is procedurally and substantively flawed,” DJI wrote in a statement shared with FLYING. “Despite repeated efforts to engage with the government, DJI has never been given the chance to provide information to address or refute any concerns. These procedural and substantive deficiencies violate the Constitution and federal law.”
FCC’s Ban
The FCC in December made the sweeping decision to ban the marketing, sale, and import of any new uncrewed aircraft systems (UAS) or components manufactured outside the U.S.
Pilots can still fly the drones they own. But the restriction on new components, including batteries and cameras, could complicate maintenance and upgrades.
Not long after issuing the ruling, the FCC partially reversed it, exempting UAS on the Blue UAS list of aircraft cleared by the Pentagon. On the list are models from Parrot, Aerovironment, Teledyne FLIR, and other popular manufacturers—but none in China.
The revised measure permits UAS components from Sony, Nvidia, Panasonic, and others. Also exempted are UAS and components made in the U.S., so long as domestic components account for 65 percent of the cost of the finished product.
The restrictions will sunset in 2027 and be reassessed to determine if foreign equipment is “hampering the resiliency of our domestic drone industrial base.”
DJI in its petition said the FCC is further using the ruling to hamper U.S. imports of its existing products, “as well as new products outside the scope of the ruling.”
Though industry groups such as the Association for Uncrewed Vehicle Systems International have joined government officials in calling for restrictions on DJI, some stakeholders were taken aback by the FCC decision.
“The scope of this action will create unnecessary challenges for American innovators without thoughtful implementation,” the Commercial Drone Alliance (CDA)—which represents several American drone players such as Skydio, Wing, and Amazon Prime Air—said in a statement.
Out of more than 8,000 drone operators surveyed by the Pilot Institute, more than 43 percent said their business could shutter if the ban persists, including more than half of agriculture, public safety, and utility operators. About 7 in 10 said their fleets comprise solely DJI models, and 97 percent said they use at least one.
In stark contrast, just 5 percent of respondents said they use drones made by Skydio, one of the leading U.S. manufacturers. About 3 in 10 said there is no FCC-approved alternative that can beat the cost and performance of DJI products.
In a December letter to Homeland Security Secretary Kristi Noem, DJI estimated that 80 percent of the U.S. law enforcement and emergency response agencies that have drone programs rely on its products.
“Americans across industries—including small business owners, public safety officers, farmers, and creators—have been and will continue to be affected, losing access to the tools they rely on to make a living and save lives,” the company told FLYING.
Not DJI’s First Rodeo
Chinese drones have been blacklisted by the Pentagon, Commerce Department, and other federal agencies, as well as several states.
Measures like the Countering CCP Drones Act have even taken aim at DJI specifically. The architect of that legislation referred to the drone manufacturer as “TikTok with wings,” comparing it to the social media app that was majority-owned by China’s Bytedance at the time.
The restrictions have come under the guise of national security. But DJI has repeatedly denied that its drones are used for nefarious purposes, such as beaming recordings of American infrastructure to the Chinese government. A 2021 Pentagon audit found that they are “recommended for use by government entities and forces working with US services.”
DJI argues the measures are purely for economic reasons.
“Kicking DJI out of the U.S. market would also benefit domestic drone manufacturers seeking to expand, but we’ve never been opposed to their growth,” it wrote in November. “In fact, we support it, particularly as they focus on sensitive U.S. government as well as military applications, areas for which DJI products are not developed nor suited for.”
As it takes on the FCC, DJI is also battling the Pentagon over its 2021 designation of the manufacturer as a “Chinese military company.” DJI rejected that characterization and later sued. A district court in September upheld the ruling. However, it found the “evidence is sparse” that three Chinese government-linked companies have an ownership stake in the company, as U.S. officials alleged.
DJI in October appealed the ruling. Oral arguments were heard earlier this month.
Though the company actively discourages and has taken steps to prevent the use of its drones in combat, Ukrainian and Russian forces have reportedly procured them through other means and relied on them heavily.
