US blacklists drone manufacturer DJI over ties to China

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US blacklists drone manufacturer DJI over ties to China

The US Department of Defense has blackballed major drone manufacturer DJI Technology over its ties to the Chinese Communist Party.

According to the South China Morning Post, DJI is one of the world's biggest producers of consumer-level drones, and is closely tied to the Chinese military.

Security concerns make the firm ineligible for a partnership with the U.S. military.

DJI has been added to a growing list of Chinese companies that have been slapped with restrictions on everything from transactions to investments.

The blacklist is a product of the National Defense Authorization Act of 2021. Companies are blacklisted by the military not only to ensure security on the U.S. side, but also to suppress growth of the People's Liberation Army, which is benefitting from business with much of the blacklist.

The ongoing blacklist of Chinese companies is just one piece of a push by the Biden administration to put pressure on the People's Republic of China.

Commerce Department regulations last month required more licenses for computer chip giants like Nvidia Corp and Micro Devices to deliver chips to China, particularly powerful artificial intelligence chips, according to a report released Monday by the Commerce Department.

The Biden administration is currently working on drafting letters informing the relevant companies of the regulations changes.

According to Reuters, the final letters could include additional actions against China.

The Commerce Department resorts to letters as a means of getting around the formal regulation process, but in such cases the changes only affect companies directly contacted by the department.