On January 6, 2025, the U.S. Department of Defense (DoD) added Chinese drone manufacturer Autel Robotics to its blacklist. Why? Alleged ties to China’s military, officially known as the People’s Liberation Army (PLA).

If you use Autel drones, you may be concerned.

Let’s break things down and see how this impacts your flying experience—and the drone industry overall.

Why Autel Was Blacklisted

This move on Autel Robotics falls under DoD’s Section 1260H list of the National Defense Authorization Act. It’s a big deal because the designation flags foreign companies suspected of military affiliations.

Don’t freak out just yet though—there aren’t any immediate legal or financial penalties tied to this list. Still, it’s a huge red flag for U.S. businesses and government agencies.

And this isn’t the first time the Shenzhen-based company has faced scrutiny.  In 2024, Autel landed on the U.S. Commerce Department’s Entity List over national security concerns. 

Autel has strongly denied these allegations. In an official statement, the company reiterated its civilian focus, stating, “Autel Robotics is not a defense contractor nor a supplier to the military and has never participated in any military-related activities.” Despite these denials, its inclusion in two major U.S. lists amplifies the challenges Autel faces in maintaining its global operations and reputation.

Related Reading: Relief for DJI Drone Users as U.S. Ban Delayed—For Now

Blacklist Impact On Users Of Autel Drones 

The Pentagon’s action doesn’t mean Autel drones will vanish from the market overnight. But it does introduce several potential challenges that could affect your experience:

1. Access to Autel Products

  • Future Availability: U.S. companies and individuals may get jittery about purchasing or using Autel drones. The stigma of being linked to the PLA could lead retailers and distributors to reconsider stocking Autel products, limiting options.
  • Spare parts: Potential for further sanctions could limit Autel’s ability to supply drones and spare parts to the U.S. market. This could leave current Autel users struggling to find replacements or accessories. 
  • Software Updates and Support: Regulatory scrutiny could delay firmware updates, impacting drone performance and security.
  • Resale Value: The perception of Autel as a “restricted” brand might affect secondhand market prices.

2. Increased Scrutiny in Regulatory Approvals

If you use Autel drones for commercial purposes, you might face heightened regulatory scrutiny. For example, securing FAA approvals for operations might become more complex due to the Pentagon’s warning.

Government agencies and contractors using Autel drones could also reconsider their procurement policies, creating uncertainty for Autel’s professional user base.

3. Export Restrictions

Autel’s presence on the U.S. Commerce Department’s Entity List already imposes export restrictions. This means that certain American-made technologies and software components cannot be supplied to Autel without special licenses. For you, this could result in delays in firmware updates, limited features, or even reduced performance of existing Autel products.

Related reading: How the DoD is Fighting Threats From Enemy Drones

4. Market Alternatives

With Autel’s reputation under fire, upcoming American drone manufacturers are likely to fill the void. 

Companies like Skydio, already growing in popularity, could further cement their positions. With government backing, they might ramp up production to meet the rising demand for “trusted” drones.

Unfortunately, increased scrutiny and reduced competition could mean higher costs. Domestic manufacturers may not match the affordability of Chinese drones like Autel’s, leading to pricier alternatives.

Financial Fallout Of U.S.-China Tech Tensions

Autel’s inclusion on the Section 1260H list is part of a broader U.S. effort to address perceived national security risks from Chinese technology firms. Over 130 companies have now been flagged, including tech giants like Tencent and Contemporary Amperex Technology Co., Limited (CATL).

This has immediate financial repurcussions:

  • Tencent Holdings saw its Hong Kong-listed shares plunge by 7.3%, wiping out HK$275 billion ($35.4 billion) in market value.
  • CATL, the world’s largest EV battery manufacturer, experienced a 2.8% drop in its Shenzhen-listed shares, equivalent to a $4.4 billion loss.

Autel Robotics is privately owned, so it doesn’t deal with stock market pressures. But the hit to its reputation is serious. Companies on these lists often struggle to build partnerships and grow in key markets like the U.S.

Section 1260H list available here

Adding drone companies like Autel and DJI to this list shows just how sensitive the industry has become. Drones play a big role in vital areas like infrastructure checks and emergency services. That’s why their their origins and affiliations are a hot topic.

Pentagon says Chinese tech firms Tencent, CATL affiliated with Beijing's military • FRANCE 24

What’s Next for Autel Robotics?

Autel has vowed to resolve what it calls a misunderstanding. The company stressed its strict adherence to both Chinese and international laws. Its focus, it claims, has always been the civilian market, rejecting any military-related activities. Autel stated its commitment to rejecting improper uses of its drones.

Despite these assurances, the path to removal from the blacklist remains uncertain. Companies like DJI and Hesai Technologies, which challenged similar designations, faced uphill battles. Their efforts show how difficult overturning such decisions can be.

What Should You Do Now?

As a drone user, staying informed is your best course of action.  Monitor updates from the FAA, DoD, and other regulatory bodies.

If you currently own an Autel drone, consider:

  • Stocking up on essential spare parts and accessories.
  • Exploring repair options independent of Autel’s supply chain.
  • Researching alternative brands in case you decide to switch.

The Pentagon’s decision is a reminder of how geopolitical issues can trickle down to affect everyday technology. While the full impact remains to be seen, staying proactive and informed will help you adapt to any changes.