The US Division of Commerce has added dozens of Chinese language corporations to its “entity listing” of corporations that won’t buy expertise from US corporations with no license from the feds. The brand new listing contains DJI, the world’s largest drone producer. It additionally contains SMIC, a significant Chinese language chipmaker that has executed enterprise with Qualcomm and different Western corporations.
This is among the authorized weapons the Trump administration used in opposition to smartphone-makers Huawei and ZTE a couple of years in the past. The export ban in opposition to these two corporations had a devastating impact on the businesses as a result of it meant they could not get entry to Google software program, Qualcomm chips, and different Western applied sciences.
It isn’t clear if the export ban shall be as damaging to DJI because it was to Huawei and ZTE. Not solely has DJI dominated the drone enterprise for years, however Chinese language corporations dominate important components of the drone provide chain. So DJI may not have as a lot hassle sourcing parts from home provide chains. Nonetheless, the announcement will definitely make it tough for DJI to take care of its dominance of the drone enterprise outdoors of China.
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