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DJIi

Founded in Shenzhen in 2006, DJI has gone on to become the world's No. 1 drone manufacturer, with a 70 per cent share of the global civilian drone market and a valuation of more than US$10 billion. 

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Hikvision, DJI and Xiaomi have had to confront a barrage of negative headlines over the past few weeks that could impact the overseas business of other Chinese tech companies.

In the wake of Huawei, the US president is again using national security as a pretext to attack another global China company, DJI, which will only result in higher prices and poorer quality

  • The first two months of 2024 were lucrative for the southern tech hub even as some of its biggest private players remain under sanctions imposed by Washington
  • Asean shipments dominated trade while sales to the United States saw a year-on-year surge of 62 per cent in January and February

Concerns about Beijing’s potential to threaten US national security have spurred several bills seeking more scrutiny about who is representing Chinese interests.

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The Pentagon cited national security concerns. The US accuses DJI, the world’s largest drone maker, of complicity in reported oppression of China’s Uygur minority and aiding the Chinese military.

The bipartisan American Security Drone Act was introduced by congressmen Mike Gallagher and Raja Krishnamoorthi, top members of a House committee on China.

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A US congressional committee is targeting Sequoia Capital after starting investigations into several other venture capital firms for their investment in Chinese technology companies.

Ding Xuexiang, China’s executive vice-premier, wrapped up a three-day inspection tour of Shenzhen on Sunday, which included a trip to blacklisted drone maker DJI.

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Beijing has high hopes for Shenzhen and its role in ensuring that China becomes technologically self-sufficient in the face of crippling US curbs on technology transfers.

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China’s drone makers say privately that the new export rules targeting military use have little impact on their civilian drones, but strict enforcement could cover a wide swath of products.

That growth underscores the industry’s resilience in the face of US trade sanctions, which included the blacklisting of consumer drone giant DJI last year.

Two Republican House members recommend that US blacklists of Chinese companies, now maintained separately by the Treasury and Commerce departments, be consolidated.

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Chinese companies at the world’s largest consumer electronics show are exhibiting new PCs, TVs and portable power stations, illustrating the country’s supply-chain strengths.

The Advanced Technology Application and Promotion Centre represents a major national initiative located in Hefei, capital of eastern Anhui province, instead of at the southern tech hub of Shenzhen.

All manufactured products bought by the federal government must have a certain percentage of domestically sourced components, which can be a challenge to ensure.

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None of the 13 Chinese firms newly blacklisted by the US defence department, including DJI, has spoken out, while state media has remained largely silent.

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Trade between China and South Korea previously operated on a win-win basis as displays and semiconductors flowed across the Yellow Sea, but competition has intensified in recent years.

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The closed-loop system remains the go-to strategy for mainland factories to keep production on track, while reducing the risk of new Covid-19 infections.

The use of drones in China’s tightly regulated airspace has been limited to tests in sparsely populated areas away from busy flight corridors, as regulators play catch-up with draft rules on UAV usage published in 2019.

After DJI’s move to suspend operations in Russia and Ukraine, Chinese companies are assessing the risk of ‘secondary sanctions’ if they keep supplying Moscow with products that could involve US technologies.

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Drone maker DJI is the first Chinese tech company to halt Russian business activities since the Ukraine war began in late February, a move that comes after allegations its products were used by Russians in battle.

DJI says all its products are designed for civilian purposes and cannot meet military requirements, after its merchandise were removed by German multinational retail chain MediaMarkt.

Hobbyists are donating their consumer devices or risking their lives as volunteer pilots; some, however, are concerned over what the Chinese manufacturer may do with their location data.

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Shenzhen has been caught in the middle of a battle for tech supremacy between China and the US, stoking concern about its economic health. New data on power consumption suggests growth is on track.

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