Chinese dronemaker DJI urges US to complete security review

Adds details from DJI letters, impact on US drone users, no immediate comment from DHS or Johnson offices

By David Shepardson

WASHINGTON, Dec 4 (Reuters) - Chinese drone manufacturer DJI, which sells more than half of U.S. commercial drones, urged Congress and the Trump administration on Thursday to quickly complete a security review or extend a December 23 deadline.

Congress last year approved legislation that required completion of a security review on DJI, the world's largest drone maker, before late December or the dronemaker will be added to the Federal Communications Commission’s Covered List. The company says this would effectively ban it from offering new drone models in the United States.

"Failure to complete this congressionally mandated audit on time threatens to destabilize a critical sector, putting American innovation, jobs, livelihoods, and public safety at risk," DJI wrote to House Speaker Mike Johnson in a letter.

Separately, DJI wrote to Homeland Security Kristi Noem on Monday urging the department to take up the security audit immediately.

"More than 80% of the nation’s 1,800+ state and local law enforcement and emergency response agencies that operate drone programs use DJI technology; these programs will be at immediate risk if they no longer have access to the most cost effective and efficient drone technology available," DJI wrote.

DHS and Johnson's office did not immediately comment. Lawmakers have been discussing the fate of DJI drones during talks on an annual must-pass defense bill.

Chinese manufacturer Hikvision filed suit in the U.S. Court of Appeals for the District of Columbia on Wednesday challenging the FCC decision to block new approvals for devices with parts from companies on its Covered List and let the agency bar previously approved equipment in some instances.

In September, a U.S. judge rejected a bid by DJI, to be removed from the U.S. Defense Department’s list of companies allegedly working with Beijing’s military.

In its lawsuit, DJI said the Defense Department’s addition of the company on the list was "unlawful and misguided." It said it has "lost business deals, been stigmatized as a national security threat, and been banned from contracting with multiple federal government agencies."

(Reporting by David Shepardson; Editing by Chris Reese and Stephen Coates)

((David.Shepardson@thomsonreuters.com; 2028988324;))