[Editor’s note: Originally published on Proptech Consulting.]
In recent years, drones have revolutionized the commercial real estate sector, forever changing the way properties are marketed and managed. Originally associated with military and recreational uses, unmanned aerial vehicles now offer a series of benefits not available through traditional methods. High-resolution aerial photography captures the property and its surroundings in incredible detail, providing a comprehensive perspective to potential buyers.
Bills pending in the US Congress could thwart this progress. Following the recent passage of the TikTok ban bill, new bills targeting Chinese companies are gaining momentum. One of these is the Anti-China Communist Party Drone Act (HR 2864), which directly targets DJI, the world's leading drone manufacturer. If passed, this bill would prevent US drone pilots from obtaining new DJI drones and could even ban the use of existing drones if DJI's FCC authorization is revoked. This would affect all drone pilots, whether for recreational, commercial, or government use, including commercial real estate.
The bill is moving through Congress, having narrowly passed the House by a vote of 217 to 199. It now goes to the Senate for debate and possible amendments. If the Senate passes the bill, amendments will be adjusted between the two houses before it reaches President Biden's desk for a final signature. Supporters of the bill argue that DJI is a significant national security threat, citing Chinese laws that would force the company to engage in espionage.
“DJI poses an unacceptable national security risk and it is past time to remove Communist China-made drones from America,” said Rep. Elise Stefanik (R-NY). “DJI drones pose a national security threat to TikTok, but they have wings. The potential for DJI drones to be equipped to transmit live footage of military installations, critical infrastructure, and the private lives of American citizens to China poses an enormous threat. Allowing this practice to continue in the United States is playing with fire. This Chinese-controlled company must not be allowed to continue operating in America.”
While some consider DJI's security threat moot, the impact of banning DJI on the U.S. market is clear. DJI controls more than 70% of the global drone market and receives significant investment from Chinese state-owned enterprises. Lawmakers are concerned about national security, but there is also an economic dimension: supporting DJI means boosting the Chinese economy, not supporting U.S.-based drone companies.
DJI supporters say banning the company would remove some of the best drone equipment from the U.S. market. DJI drones consistently rank high on lists of the best drones. Beyond drones, other camera-centric DJI products, such as action cams and gimbals, could also be banned.
The current version of the bill would not ban the use of existing DJI drones in the US, only the sale of future products, accessories and software. However, if passed, the bill could revoke existing FCC authorizations for DJI products. Even if the Senate approves the ban, there could be a transition period of three years or more to allow adjustments before the ban goes into full effect. During this period, DJI could potentially sell part of its business to a non-Chinese company.
The Biden administration has yet to take a clear stance on the bill, but given the swift response to the TikTok ban, DJI's future in the U.S. appears uncertain. The TikTok ban and now efforts to ban DJI drones show that the U.S. government is very serious about dealing with Chinese companies operating in the country and that may pose a security threat.
As tensions between the U.S. and China rise, DJI has been caught in the crossfire, as has TikTok. But if DJI truly poses a security threat, the government has full authority to address it. The real estate industry will likely continue to adopt drones, with or without DJI. But they may soon have to plan for a future where Chinese-made DJI drones are not an option.