US Customs and Border Protection (CBP) has halted imports of some drones from Chinese company DJI, according to a report from Reuters. The move comes over concerns about the Uyghur Forced Labor Prevention Act (UFLPA), a law designed to combat forced labor abuses in East Turkistan.
DJI DENIES FORCED LABOR ALLEGATIONS
In a letter to its distributors, DJI strongly denied any involvement in forced labor practices. “DJI strongly affirms that forced labor is not present at any stage of our manufacturing process,” the company said in a statement. DJI clarified that its manufacturing operations are in Shenzhen or Malaysia, not Xinjiang.
The company called the allegations “unsubstantiated and categorically false,” but acknowledged that “the law gives them the authority to detain goods without any concrete evidence.”
WIDER SCRUTINY OF CHINESE-MADE DRONES
The move is part of a broader initiative by the U.S. Department of Homeland Security to examine the origins of products, particularly drones made in China. “We’re looking at aircraft that have Chinese and Russian hardware, chips, and software,” Commerce Secretary Gina Raimondo told CNBC.
The increased scrutiny comes amid heightened tensions between the United States and China, particularly in the technology sector. Drones, with their data-gathering and surveillance capabilities, have become a focus of concern.
LEGISLATIVE ACTION AND INDUSTRY CONCERNS
Last month, the U.S. House of Representatives voted to ban new DJI drones from operating in the United States, with the bill awaiting Senate action. U.S. lawmakers have voiced concerns about the potential for data transfer, surveillance, and national security risks that DJI’s drones could pose, concerns the company rejects.
The proposed legislation, known as the Countering China Drones Act, represents a broader effort to restrict Chinese technology in sensitive sectors. DJI noted in its letter that the current customs issue “does not appear to be related to the pending legislation against DJI in the U.S. Congress.”
IMPACTS FOR INTERNATIONAL TRADE AND TECHNOLOGY
This case underscores the growing challenges facing international technology companies in navigating a complex geopolitical landscape. The use of trade policy to address human rights and national security concerns is becoming increasingly common, creating a complex regulatory environment for global technology companies.