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DJI's December Ban Looms: Shell Companies Evade U.S. Rules

DJI's use of shell companies to dodge U.S. drone ban raises questions about consumer safety and the legitimacy of these businesses.

In the picture there is a toy aircraft.
In the picture there is a toy aircraft.

DJI's December Ban Looms: Shell Companies Evade U.S. Rules

The deadline for banning DJI drones in the U.S. is looming in December 2024. As the date approaches, concerns rise about DJI's use of shell companies to evade export controls and FCC rules. These companies, including Fikaxo and Cogito Tech, pose risks to consumers and raise questions about their legitimacy.

DJI, the world's leading drone manufacturer, is using shell companies to continue selling its products in the U.S. These companies, such as WaveGo Tech and SZ Knowact, often have limited product lines and complex supply chains mirroring DJI's footprint. Fikaxo, for instance, employs sophisticated tactics like rebranding and routing operations through subsidiaries to hide its connections to DJI.

Anzu Robotics, however, differentiates itself by selling a drone based on the DJI Mavic 3 Enterprise through a licensing agreement. It develops independent software and partners with U.S.-based companies. Yet, some U.S. lawmakers remain skeptical about Anzu's approach, questioning its business arrangement with DJI. Meanwhile, other companies like Spatial Hover and previously Fikaxo Drone have registered as shell companies to circumvent the ban.

As the deadline for banning DJI drones in the U.S. nears, consumers should be aware of the risks associated with buying from shell companies. While Anzu Robotics offers an alternative, its legitimacy is still debated. The use of shell companies by DJI and others raises concerns about consumer protection and the enforcement of export controls.

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