Moolenaar, Krishnamoorthi Expose PRC Drone Firm Masquerading as U.S. Agency – sUAS Information

Chairman John Moolenaar (R-MI) and Rating Member Raja Krishnamoorthi (D-IL) of the Home Choose Committee on the Strategic Competitors Between the USA and the Chinese language Communist Get together wrote to the CEO of Anzu Robotics, demanding solutions about his firm’s relationship with Individuals’s Republic of China (PRC) army drone firm, DJI. In separate correspondence to Secretary of Commerce Gina Raimondo, the lawmakers define overwhelming proof of Anzu’s regarding relationship with DJI and request that the Commerce Division take into account steps to deal with the specter of Anzu, together with a equally problematic drone maker, Cogito Tech Firm Ltd.

Within the letter to Anzu’s CEO Randall Warnas, Moolenaar and Krishnamoorthi write, “[S]ecurity researchers have confirmed that Anzu’s Raptor T is actually a DJI Mavic 3 painted inexperienced, with its distant management and software all operating on DJI know-how… Primarily based partly by yourself statements, it seems that DJI is utilizing Anzu as a passthrough firm in an try and keep away from present and anticipated U.S. restrictions on DJI merchandise. Much more disturbingly, we discovered that Anzu’s CEO admitted in a latest interview that the first objective of the DJI-Anzu relationship was to bypass rising U.S. legislative restrictions on DJI merchandise.”

They proceed, “The character of the DJI-Anzu relationship seems to defy widespread enterprise conventions. As an illustration, Anzu claims that DJI is offering its industry-leading drone know-how to it by means of a license that offers ‘Anzu Robotics the rights to switch and manufacture this know-how at will. There are not any royalties shared with the licensing group, no joint or shared possession of Anzu Robotics, and no reporting on buyer knowledge.’ On prime of that, in accordance with displays that Anzu supplied, DJI can also be offering ‘precedence technical assist’ for all Anzu drones. Given these details, it’s exhausting to know the enterprise rationale for DJI to enter into this relationship except for utilizing it as a passthrough to bypass authorized restrictions (present and potential) positioned on its merchandise.”

Due to Anzu’s deeply problematic ties to the PRC army drone firm DJI, Moolenaar and Krishnamoorthi request solutions to the next questions from Anzu’s CEO, together with:

• On what date did Anzu first publicly disclose that its drones are rebranded DJI merchandise or in any other case closely depend on DJI know-how and components? Why did Anzu not disclose its relationship with DJI till after public reporting already confirmed that Anzu was successfully promoting rebranded DJI merchandise?
• Anzu has said that “there are not any royalties shared with the licensing group” (DJI).Elsewhere, Anzu has acknowledged that “roughly half of Anzu’s components come from China. A lot of its software program originated there. Anzu licensed the design for its drones from DJI, which receives a cost for each drone that Anzu orders from its producer in Malaysia.”
• Please present the Choose Committee with a duplicate of all contractual preparations between your organization and DJI (or any affiliated entity).
• Please checklist the identify, location, and phone data of the Malaysian issue(ies) and some other factories, within the PRC or in any other case, that produces components for Anzu merchandise.
• Please checklist the identify, location, and phone data for all entities that contributed to the software program and firmware that’s discovered inside Anzu merchandise.
• Anzu has said on its web site that DJI receives no royalties for its work with Anzu, however has acknowledged in interviews that DJI receives a cost for each drone that Anzu orders from its Malaysian facility. Please describe all advantages that DJI receives for its licensing settlement with Anzu, together with (however not restricted to) all types of income technology, entry to markets, and knowledge acquisition.
• Why is DJI apparently offering technical assist for Anzu merchandise?
• What steps have you ever taken to make sure that DJI doesn’t extract knowledge from U.S. prospects when participating on this technical assist?
• Please checklist all Anzu Robotics drone components manufactured in factories owned or managed by PRC corporations comparable to DJI. These embody DJI-affiliated services operated outdoors of China.
• Please checklist all DJI-produced chips contained onboard Anzu merchandise and the chips’ functionalities, together with skill to enter or output knowledge by means of WiFi, 5G, or different means.
• DJI is listed on a number of U.S. authorities restricted lists for aiding the Individuals’s Liberation Military and facilitating genocide, amongst different dangerous habits. Anzu’s drones comprise lots of the similar components and inherently the identical vulnerabilities as DJI merchandise. Does Anzu acknowledge that its merchandise fall beneath the identical restrictions in the USA as DJI? If not, what are Anzu’s authorized and technical arguments for a opposite place?
• Please present a chronology of Anzu’s engagement with DJI, together with any discussions with DJI that occurred previous to the formal institution of your organization in contemplation of its institution.
• Please additionally describe the character of your private employment by DJI from 2015 to 2017.

Background:

Over the past yr, Congress and regulators have taken motion to counter the nationwide safety menace posed by PRC drone corporations and deal with severe considerations associated to DJI’s operations in the USA. Quite a few officers have outlined the unacceptable dangers that DJI poses, together with its deep partnership with the Individuals’s Liberation Military, its expressed allegiance to the Chinese language Communist Get together, its surveillance know-how working throughout U.S. soil, and that very same know-how equipping the CCP’s genocide of the Uyghur folks in Xinjiang.

Because of this, the Home handed the Countering CCP Drones Act, which might prohibit DJI know-how from accessing U.S. communication networks if signed into regulation. The Pentagon positioned DJI on its blacklist as a ‘Chinese language army firm.’ The Treasury Division forbids People from investing in DJI. The Commerce Division restricts U.S. corporations from exporting know-how to DJI. DJI has sought to flee prohibitions and anticipated bans on their merchandise by white labeling its merchandise by means of a brand new firm primarily based in Texas, Anzu Robotics. Current analysis has revealed that ‘Anzu Drones’ are apparently DJI drones painted a distinct colour, operated by DJI software program and know-how.

Click on HERE to learn the lawmakers’ letter to Anzu.

Click on HERE to learn the lawmakers’ letter to Secretary Raimondo.