Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Cover Story: The AI Boom’s Unsettling Paradox
New Flight System Targets ‘Blind Spots’ in China’s Low-Altitude Economy
LATEST
New Flight System Targets ‘Blind Spots’ in China’s Low-Altitude Economy
Cover Story: The AI Boom’s Unsettling Paradox
AI Keeps China, U.S. From Decoupling Despite Trade Tensions, Insiders Say
Wingtech Demands Return of Nexperia Control After Dutch Freeze Pause
Intel Pivots to Custom Chips to Tap China’s Trillion-Yuan Computing Markets
Geely Leads $141 Million Round for Tsinghua-Linked Robotics Startup
China’s Giant Neutrino Detector Delivers First Results With Record Precision
China Unicom Taps Veteran Executive as Chairman to Navigate Telecom Transition
Chinese Self-Driving Firms Accelerate Into Middle East, Southeast Asia
Baidu Posts Record Revenue Decline as Ad Business Falters
Xiaomi’s EV, AI Units Post First Quarterly Profit
China’s Agricultural Drone Makers Pivot to Smarter Navigation as Size Race Ends
Alibaba Renames AI App to Stand Out in China’s Crowded Chatbot Market
Investors Flock to Chinese eVTOLs Chasing Regulatory Green Lights
Nexperia Headquarters Rachets Up Feud With China Unit With Salvo of Accusations
Robot-Maker Unitree Steps Closer to China IPO
Tencent Says Talks With Apple on WeChat Game Fees Are Advancing
Baidu Unveils Ambitious AI Chip Roadmap, Targeting 1 Million-Card Cluster by 2030
Tencent’s Profit Rises 19% on Overseas Gaming and AI-Powered Ad Surge
Caixin Summit: Design, Commercialization Key to China’s Low-Altitude Economy Taking Off, Industry Insider Says
U.S. Tech Supplier Cuts Tie with Chinese Drone Makers

By Bloomberg / Jul 18, 2019 04:57 AM / Business & Tech

Photo: Bloomberg

Photo: Bloomberg

An American supplier of drone technology to dozens of state and local law enforcement and public safety agencies said it will stop working with Chinese drone manufacturers, citing security concerns.

Cape Productions Inc., a Redwood City, California-based startup, plans to inform customers Wednesday that it will stop selling software compatible with Chinese drones to its clients in the U.S. and a handful of other countries, most of which use the tools to remotely dispatch and operate the small aerial vehicles to survey possible incidents or crime scenes.

It’s a blow to China’s DJI, the world’s top maker of drones which has spent years trying to calm fears that its products could be used for espionage after several U.S. government agencies expressed cyber security concerns.

“The statements from different federal agencies have caused partners and prospective customers to have concerns,” said Chris Rittler, Cape’s chief executive officer. “That’s real.”

But in blacklisting Chinese drones, Cape runs the risk of hampering its own business, at least in the short term. DJI currently accounts for every single drone that runs Cape’s software commercially. The company declined to specify how many that is, saying only that it has flown more than 150,000 trips.

Cape will begin asking new customers to choose from a list of approved manufacturers and allow existing clients to use their DJI drones until the end of their contracts, which last no longer than a year.

In a letter to a Senate subcommittee last month, DJI denied charges that it sends video footage abroad and said it has built custom drones without internet capabilities for use in government projects. It attributed criticism to a desire to squelch competition from China.

This month, the Interior Department recommended approving DJI’s products but suggested limiting their use to nonsensitive missions involving data that could safely be made public. One reason the department cited for approving DJI was the lack of any viable domestic alternatives.

Related: China's DJI Broadens U.S. Operations to Quell Security Concerns

Share this article
Open WeChat and scan the QR code