National Business Wire (Dec 26) -- The U.S. defence spending bill for fiscal year 2024 will prohibit the use of federal funds for the purchase of Chinese-made drones.
Not long ago, U.S. President Joe Biden signed the $886 billion National Defense Authorization Act (NDAA) for Fiscal Year 2024.
The bill will prohibit U.S. federal agencies and federally funded programs from purchasing or using drones made by countries deemed to pose a threat to U.S. national security, namely China and Russia.
Although the legislation does not explicitly name any country or company, it would restrict SZ DJI Technology Co Ltd., the world's largest commercial drone maker, as well as Autel Robotics, another Chinese drone company.
Autel Robotics has faced questions despite relocating much of its manufacturing work and company management to its U.S. office in Bothell, Washington.
In late November, a bipartisan group of 11 U.S. House of Representatives members sent a letter to the White House accusing Autel Robotics of endangering national security, calling for an investigation and a decision on whether to impose sanctions on the Chinese drone maker.
The company said in a statement in early December that as a high-tech company in civilian drones, it strongly opposes the use of drone products for military purposes and for eavesdropping and surveillance or other human rights violations.
According to market statistics website Statista, DJI accounted for about 80% of the U.S. drone market in 2022, while Autel Robotics held about 5%.
"The bill plays up the Chinese threat and suppresses Chinese companies," Mao Ning, a spokesperson for China's Ministry of Foreign Affairs, said at a regular press conference on Tuesday.
It "restricts normal economic and trade exchanges and humanistic exchanges between China and the U.S., which is not in the interest of either party," Mao further said.