(Pocket-lint) - The US Department of Commerce's Entity List has added DJI, one of the world's most popular drone makers, officially blacklisting the Chinese company by declaring it a national security concern. However, Neither China's No. 1 chipmaker SMIC nor the world's largest drone manufacturer DJI, had commented over the subject-matter while being asked about the issue.
According to Commerce Secretary Wilbur Ross, DJI has involved in "ubiquitous surveillance to repress its citizens in Xinjiang and elsewhere".
Controversy has surrounded DJI, which has grown over the past 14 years into the most popular consumer drone maker in the US with 77% of the market share, due to suspicions about its relationship with the Chinese government and allegations of user data collection. Huawei dealt with similar problems previous year.
It is unclear if the coming change of administration in the U.S. will change the USA's approach to China, which is increasingly resembling a new Cold War. He told that the Department of Commerce is also going to put 25 shipbuilding research institutes affiliated to the Shipbuilding Corporation of China in the entity list. Shares of China's top chipmaker slid 5.2% Friday in Hong Kong on the news.
While this doesn't immediately affect USA consumers from buying DJI products, companies added to this list have historically found it challenging to do business in the United States; Huawei is a prime example.
VP Pence taking questions as he and second lady get COVID vaccine
On Dec. 11, the US government agreed to double its purchase of Moderna's vaccine to 200 million doses by the end of June. Pence indicated that formal approval for Moderna would be a matter of hours.
In the announcement, it has mentioned, 'during the final weeks of President Trump's term, it comes after relations between Washington and Beijing soured under his administration.
SMIC has said previously that it has no relationship with the Chinese military.
Companies already on the list include the telecoms giant Huawei and the surveillance camera maker Hikvision.
Asked about the Reuters report, a spokesperson for China's Ministry of Foreign Affairs on Friday accused Washington of "using its state power to suppress Chinese companies". On Thursday, Senator Marco Rubio (R-FL), a China hawk, sent a letter to the Commerce Department asking why U.S. companies were granted licenses to sell semiconductors to the Chinese tech firm Huawei after it was blacklisted.
"We urge the Chinese Communist Party to respect the human rights of the people of China, including Tibetan Buddhists, Christians, Falun Gong members, Uighur Muslims, and members of other ethnic and religious minority groups", Pompeo said in a statement.