Why It Matters

DJI faces a threat to its U.S. market access. The FCC’s December 2025 decision to place all foreign-made drones on its "Covered List" effectively bars the company from selling new models in America, culminating a coordinated congressional and executive branch campaign to eliminate Chinese drone technology on national security grounds.

The stakes are enormous: DJI controls over 90 percent of the global commercial drone market and serves critical sectors including first responders, agriculture, energy, and infrastructure inspection—industries now facing significant operational disruptions and cost increases. Legislative solutions include direct bans, tariff-based "rip and replace" programs funding domestic alternatives, and expanded counter-drone authority for law enforcement.

By the Numbers

DJI Technology Inc. paid $150,000 to CLS Strategies in the fourth quarter 2025, continuing a decade-long lobbying campaign. The company has spent approximately $18.2 million on federal lobbying since 2016 across 161 disclosures and 17 lobbying firms. In-house lobbying accounts for $11.29 million over 42 disclosures, while CLS Strategies has received over $2.125 million across 23 engagements since 2020.

Current partners include Sidley Austin LLP ($690,000) and Liberty Government Affairs ($277,500), both focused on the Countering CCP Drones Act.

The Agenda

DJI Technology Inc. is defending against bipartisan efforts to restrict its products from U.S. markets. The company faces pressure from multiple bills, including the American Security Drone Act and Countering CCP Drones Act, alongside key members like Senator Rick Scott and Representative Elise Stefanik leading the campaign to curb DJI’s market access.

Congressional committees including Homeland Security, Judiciary, Armed Services, and Transportation are actively holding hearings on foreign drone threats.

Broader Context

The Trump administration has fundamentally reshaped the regulatory environment. The FCC’s December 2025 action culminated months of pressure driven by mysterious drone sightings over U.S. military installations and national security concerns.

The policy shift deliberately promotes domestic manufacturers. DHS announced $115 million in counter-drone investments, while FEMA awarded $250 million through its Counter-UAS Grant Program. The U.S. Army awarded Skydio $7.9 million in 2025.

However, 43.4 percent of drone operators believe the ban will have an "extremely negative/potentially business-ending" impact, and first responders warn of operational disruptions.

Between The Lines

Congressional activity has intensified dramatically. Multiple proposals directly threaten DJI’s market access, including the Drones for First Responders Act proposing tariffs on Chinese drones, and the Drone Espionage Act targeting espionage concerns.

Senator Rick Scott secured FCC Covered List provisions in the FY2025 NDAA. Representative Stefanik highlighted that 90% of first responder drones are Chinese-made, framing this as a security vulnerability.

Competitive Landscape

DJI faces organized competition from domestic companies actively lobbying for restrictive policies. Axon Enterprise Inc. lobbies heavily on "drone and counter drone legislation," positioning itself to capitalize on government counter-UAS spending. Skyways Air Transportation Inc. and Neros Inc. also lobby on drone technology from defense perspectives.

Skydio secured multi-million dollar Air Force contracts in November 2025 alongside its Army reconnaissance contract.

The Bottom Line

DJI’s $150,000 payment to CLS Strategies represents a defensive holding action in a deteriorating political environment. The FCC’s December 2025 ban, executive orders promoting domestic drone dominance, and sustained congressional pressure from China hawks have fundamentally shifted policy against the company.

While DJI maintains relationships with agricultural and emergency services communities dependent on its affordable technology, the legislative and executive momentum suggests limited prospects for reversing restrictions. The company’s continued lobbying efforts signal attempts to preserve existing sales and explore national security waivers, but the trajectory remains decisively restrictive.

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