s government ban dji, the u.s government, has decided to put the chinese drone maker dji technologies on an investment block list, dji wasnt the only chinese company that would be added to the block list. Seven other chinese companies, mostly in the tech sector, will also be placed on this investment block list by the us department of treasury, dji and the other. Seven chinese companies will join a cohort of 60 chinese companies already on the list. So what is the reason for banning one of the most popular drone companies in the largest consumer market in the world? The company is being put on a list of companies closely associated with the chinese military industrial complex. So this move looks like part of the latest move by current u.s president joe biden to crack down on china to repress weakers and other ethnic minorities in chinas xinjiang region. This isnt, the first time dji, has been scapegoated between the u.s and china trade wars. Last year, the u.s department of treasury place dji on the entity list. A foreign company being put in the entity list means american companies arent allowed to sell components to the company. This meant that dji couldnt use american technologies and services for their products. At first glance, it may not look like a big deal. Dji is a chinese company and they source almost all of their parts from outside. That is what makes them competitively priced, but you would be surprised to learn that dji critically depends on other american companies, while dji didnt disclose how banning u.

s companies from working with dji will affect them its not that hard to figure out dji uses american is probably Using american based cloud services to host their websites, storage and other systems like sky, pixel and flighthub, and it isnt just limited to cloud services. Dji, probably uses other critical technology like processors, thermal imaging sensors and various technologies from american companies. The entry into the entity list meant that those american companies had to go through great pains to keep working with dji dji. At the time strongly came out against this action. Dji stated that they had done nothing to justify being placed on the entity list. On the other hand, the us government firmly believes that dji was aiding the chinese government with wide scale human rights abuses by providing them with cutting edge surveillance and analysis technology, especially in provinces like xinjiang, where, according to us officials, dji drones are not only used to Track and surveil the uyghurs but dji may use forced labor in their supply chains and benefit from the humanitarian crisis. Dji hasnt commented on the recent investment ban, but previously dji has maintained that they are not involved and the pressures being put on them by the us government are not justified. So how do these bans affect you as the consumer? The recent investment ban by the us department of treasury means that individuals and companies are no longer allowed to invest in dji and the other seven companies are put on the block list.

This list already includes 60 different companies that are also banned from receiving american investment money Music, while dji is technically a chinese company. American investors have made many investments, most notably kleiner perkins, a california based venture capital firm as the lead investor in dji. So why should you be worried as a consumer that american dollars cant be invested into dji? For starters, it means that dji will be receiving less investment, which is crucial for a tech company like dji, as it needs a lot of capital for research and development to make new and better products. Just last year, in 2020, dji was leading the consumer market with a massive 77 share of the entire consumer drone market. This is how huge dji is for drone enthusiasts all over the world and, as any drone enthusiast knows, dji has always been at the cutting edge of consumer drone technologies with key competitors lagging behind years in technology and features. This era might be coming to an end, as a vast investment pool of american investors has forcefully dried up. This means less money at the disposal of dji to innovate. This action by the u.s department of treasure may hinder growth in the consumer drone market for years. To come, while the uyghur crisis is a genuinely serious issue, it seems like in many of these cases the us government is using the problem just as an excuse for their trade war with china. In that case, the drone fans are the ones that will lose this combined with the dji being put in the entity list that upcoming dji products will have a hard time, not just in the u.

s market, but around the globe. This is because not only is dji using american technology in their products, but some of these technologies like apples, app store and googles play store, are integral to its products. Dji fly app is integral for dji drones for telemetry related stuff. Imagine if google was forced to ban the dji applications from their platform instantly, it would hamper dji drones, accessibility. The us government has already done something similar. Previously, it was done to the chinese smartphone giant huawei, the us government forced google to stop giving hawaii android support and overnight the smartphone giant was killed. Only the future will tell how far the us government is willing to go in their trade war with china and how it will affect our favorite drone company.