Beginning last year, the United States has been in a trade war with the People’s Republic of China. The two countries are the largest two economies in the world; by gross domestic product (GDP), the United States’ economy is the largest, whereas China has the world’s most powerful economy by measure of purchasing power parity (PPP).
Since the start of 2019, the Trump administration has raised concerns about doing business with Chinese tech firms, namely Huawei.
One of the largest drone manufacturers on the planet, DJI, a Chinese manufacturer of tech products, recently spoke out against the Trump administration’s and Congress’ recent actions taken against Chinese tech giants.
Although the United States federal government hasn’t taken any actions against DJI specifically, the company is worried that it may soon have to quit doing business in the United States, reports Reuters. Americans collectively purchase more drones from DJI than any other manufacturer, regardless of whether they’re found in China or elsewhere.
The Senate’s Transportation Subcommittee, which is part of the Senate’s Commerce Committee, shared in a meeting last week that prolific Chinese drone manufacturer DJI could be of as much concern as Huawei in terms of collecting information from American users and then directly turning around and sharing those insights with the Chinese government.
This is of concern because China has been accused of having unfair intellectual property guidelines that allow Chinese manufacturers, which largely provide the most value in terms of all manufacturers, to require businesses from the United States to share their organizations’ patents, trade secrets, and other helpful information with them. Chinese manufacturers have been able to demand the sharing of such information with widespread success for many years, thanks to the best manufacturers on planet Earth in terms of providing the highest value for the lowest cost having outshined the rest of the world’s manufacturers by leaps and bounds.
Some industry experts based in the United States have alleged that DJI directly sends all information that it collects from American users and the American market to the Chinese government. However, DJI has repeatedly denied such allegations.
Even though some American government officials and industry experts believe that DJI is operating against the concerns of the United States government and the country’s economy, DJI has been awarded the rights to several government contracts. For example, DJI just came out with a drone system intended solely for use by governments earlier today, which the United States is already expected to utilize.