The Federal Communications Commission (FCC) is intensifying enforcement of the ban on drones from Chinese manufacturer DJI. Eight companies—including Xtra Technology and Cogito Tech—have received $25,000 fines for refusing to disclose potential DJI connections. The FCC also plans to revoke accreditation for China's SGS laboratory, which certified DJI products, aiming to prevent ban circumvention through shell companies.
Experts note these actions are part of broader US efforts to restrict Chinese tech in critical sectors. Congress allocated $2.1 billion in 2025 for the "Replace Chinese Telecom Equipment" program, now expanded to include drones, setting a potential global regulatory precedent.
Sanctioned Companies
FCC penalties target eight firms suspected of DJI ties:
- Cogito Tech
- Xtra Technology
- Lyno Dynamics
- Skyhigh Tech
- SZ Knowact (Skyrover)
- Fixaxo Technology
- Spatial Hover
- WaveGo Tech
Companies must respond within 10 days. WaveGo Tech and SZ Knowact jointly market Skyrover drones that match DJI's technical specifications.
Corporate records show five companies registered in offshore zones (BVI, Caymans), obscuring ownership. Lyno Dynamics and Spatial Hover share IP addresses, suggesting coordinated operations.
Ban Rationale
Since December 2026, foreign drone companies have been designated national security threats due to:
- Data transfer risks to Chinese authorities
- Opaque supply chains
- Critical infrastructure vulnerabilities
The FCC can revoke equipment certifications containing banned components since 2025.
Additional Concerns
- DJI's refusal to submit source code for review
- Automatic telemetry uploads to Chinese servers
- Use of proprietary communication protocols
Circumvention Tactics
Identified bypass methods include:
- Shell companies (Xtra, Skyrover)
- Identical marketing materials
- Third-party certification
Technical analysis shows Xtra Muse cameras are functionally identical to DJI Osmo Pocket 3, while Muse 2 Pro uses DJI's "From Pocket to Pro" tagline.
Other Techniques
- Rebranded product registrations
- Import intermediary companies
- Parallel product lines
Firmware analysis reveals DJI code references and matching encryption certificates in Xtra devices—often differing only by exterior logos.
User Risks
US DJI owners face:
- Terminated software support
- Feature lockdowns
- Voided warranties
The FCC recommends certification checks on its website, suggesting alternatives like Skydio, Autel Robotics, or Parrot. Professional users should retrain staff.
Additional Consequences
- Insurance policy cancellations for banned drones
- Restricted flight zones near critical infrastructure
- Potential legal liability for uncertified equipment use
SGS Lab Sanctions
On May 11, 2026, the FCC moved to revoke accreditation for Shenzhen's SGS-CTST lab due to:
- 15% ownership by China Standard Science & Technology Group
- Oversight by China National Institute of Standardization
- China's "foreign adversary" classification
The lab certified DJI Osmo Pocket 4 Pro and WaveGo Tech products.
Market Impact
- Extended certification timelines
- Higher testing costs
- Shift to alternative labs
Following the FCC decision, European labs (TÜV Rheinland, Bureau Veritas, DEKRA) suspended Chinese partnerships—potentially affecting 40% of EU telecom equipment certifications.
Owner Recommendations
- Verify FCC certification status
- Disable automatic updates
- Identify alternative solutions for critical operations
- Monitor FCC and DJI announcements
- Back up flight data
- Explore local control options
Commercial Users
- Request component origin documentation from suppliers
- Develop migration plans for alternative platforms
- Conduct fleet audits
Questions & Answers
Which companies are banned?
Eight firms including Xtra Technology and Cogito Tech. The FCC Enforcement Bureau lists all sanctioned entities, with 12 additional organizations under Commerce Department investigation.
Can you still buy DJI drones in the US?
Official sales have ceased. Starting 2027, even used imports may require permits. Customs has increased inspections of shipments from China, Hong Kong, and Singapore for gray-market goods.
What should owners do?
Check certification status, disable auto-updates, and prepare backup solutions. Commercial operators can apply for FCC temporary waivers (45-90 day processing).
Why is the FCC banning Chinese drones?
The 2021 Infrastructure Protection Act mandates eliminating equipment with potential backdoors. A Pentagon report identified 17 DJI firmware vulnerabilities enabling video/coordinate interception.
What are the alternatives?
- Skydio (US) - Best for autonomous flight
- Autel Robotics (US/China) - DJI accessory compatibility
- Parrot (France) - Data security focus
- Iris Automation (Canada) - BVLOS solutions
- Impossible Aerospace (US) - Extended flight time
Market consequences?
Alternative drone prices rising 30-70% (DroneAnalyst), consumer innovation slowdown, and 2-3 year functionality gaps. $4.2 billion market shifting to US/EU manufacturers.
Legal risks for users?
From 2027: $1M corporate fines for unauthorized imports. Individuals risk confiscation. California and Texas already restrict DJI flights near military sites.