Trade Law Daily is a Warren News publication.

House Select Committee Says Anzu Makes DJI Drones

American drone maker Anzu Robotics produces DJI drones, not its own designs, allege the leaders of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party.

Sign up for a free preview to unlock the rest of this article

Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

The committee publicized its letter on Aug. 27. The leaders also sent a letter to the commerce secretary, and asked that the department address Anzu and Cogito Tech Company.

They say that Anzu is able to sell DJI designs so that DJI can circumvent legal restrictions on DJI drones.

They asked CEO Randall Warnas: "Anzu has stated on its website that DJI receives no royalties for its work with Anzu, but has acknowledged in interviews that DJI receives a payment for every drone that Anzu orders from its Malaysian facility. Please describe all benefits that DJI receives for its licensing agreement with Anzu, including (but not limited to) all forms of revenue generation, access to markets, and data acquisition."

They also asked for the contact information and company names for Malaysian and Chinese factories that build the drones or parts for the drones, and for information about DJI-made chips in the Anzu drones.

Committee Chair John Moolenaar, R-Mich., and ranking member Raja Krishnamoorthi, D-Ill., wrote: "DJI is listed on multiple U.S. government restricted lists for aiding the People’s Liberation Army and facilitating genocide, among other harmful behavior. Anzu’s drones contain many of the same parts and inherently the same vulnerabilities as DJI products. Does Anzu acknowledge that its products fall under the same restrictions in the United States as DJI? If not, what are Anzu’s legal and technical arguments for a contrary position?"

Warnas said in an email: "We believe there are fundamental misunderstandings about how Anzu Robotics operates and complies with the law. We look forward to working collaboratively with the Committee to address their concerns."