Another 44 billion in penalties! Da Jiang 80% of chips rely on imports from the United States, dare not pay skyrocketing fines?

Your drone technology has infringed on my patent, and you must pay me a huge fine! "The arrogant and domineering United States has recently challenged China's private technology enterprise, Dajiang, to pay a whopping $44 billion fine. If not delivered, it is prohibited for DJI to sell products in the US market

Your drone technology has infringed on my patent, and you must pay me a huge fine! "The arrogant and domineering United States has recently challenged China's private technology enterprise, Dajiang, to pay a whopping $44 billion fine. If not delivered, it is prohibited for DJI to sell products in the US market. However, DJI's main chips have long relied on American imports, and once banned, its fate may not escape Huawei's footsteps. Does Da Jiang dare to confront the United States and refuse to pay a fine this time?

What does Xinjiang rely on to challenge the United States?

This is not the first time the United States has been in trouble with Dajiang. As early as 5 years ago, the United States blacklisted Dajiang on the grounds of so-called "national security" and prohibited government departments from purchasing its products. But this did not stop the wild growth of DJI in the US market. Nowadays, the DJI drone has become the most familiar "passenger" in the American sky. From monitoring urban traffic, to spraying pesticides on farmland, and then delivering goods to users, DJI products have deeply integrated into American life.

The United States cannot accept a Chinese company dominating its domestic drone market and has repeatedly designed traps to suppress DJI. This year, the United States filed a lawsuit against Dajiang, claiming that the drone technology developed by Dajiang in 2009 infringed on an 11 year patent application by a US company and demanded a fine of $2 billion. Dajiang refused to execute, and as a result, the United States increased its budget to $6 billion. This is already equivalent to the total net profit of Xinjiang in the past 5 years. Even more virulent is that the United States requires Dajiang to hand over its core technical code, otherwise it cannot prove that it has not "plagiarized".

Faced with the gradual pressure from the United States, Dajiang did not retreat. They chose to take the initiative and file a counterclaim in the United States, claiming that a US company had infringed on DJI's intellectual property rights. At the same time, Dajiang also seized the opportunity and applied for patents to protect its core technology on a large scale. At present, DJI has over 4000 patents, among which the most valuable is the independently developed flight control chip technology, which is also the key to ensuring the excellent performance of DJI products.

It is these independent core technologies that give DJI the confidence to confront the United States head-on. Dajiang is aware that the United States is still unable to develop drone products that can rival them, and can only rely on judicial means to suppress them. And Dajiang has prepared for the worst: even if banned by the United States, it will never surrender its core technology, even if it cannot be sold in the US market.

The suppression by the United States has led Dajiang to seek new ways out

Although DJI has not made any concessions in response to the US crackdown, the US blockade has indeed sounded an alarm for DJI. Da Jiang realized the risk of excessive reliance on the US market and began to accelerate its expansion into other developed markets such as Europe and Asia.

The Japanese government has approved the entry of DJI products into its market, and DJI drones will serve Japan's disaster relief, measurement, security and other fields. In Europe, DJI is working with local drone giants to develop industry standards, which will help its products obtain European certification faster. At the same time, Xinjiang also focuses on developing countries, especially those along the "the Belt and Road". The demand for drones in these countries is far from saturated, and it is a blue ocean market worth exploring.

In fact, it is the explosive growth of the Chinese market that has led to the rapid growth of DJI. In 2020, DJI's unmanned aerial vehicle shipments exceeded 70% of the global total, with 80% coming from the domestic market in China. This also gives DJI confidence to face pressure from the US market. As long as the Chinese market maintains rapid growth, DJI will have sufficient strength to continue investing in research and development and achieve independent innovation of core technologies.

To reduce its dependence on the United States, DJI is accelerating the localization of key components. The chips currently used by DJI mainly rely on imports, which does pose a risk of being banned by the United States. However, DJI mainly uses mid to low-end chips, which China has the ability to achieve independent production. In contrast, DJI's unique advantage lies in its independently developed flight control system, which fully controls the underlying code in DJI's hands. As long as this core system is not exposed, it will be difficult for DJI to be "hardware banned".

In summary, Dajiang is responding to the US crackdown with a strategy of "not paying fines and accelerating self research". It has confidence in relying on independent innovation to break through key technological barriers and reduce dependence on the United States. At the same time, it is actively exploring other developed and developing markets around the world, breaking free from the limitations of excessive reliance on the United States as a single market. It is precisely because of these countermeasures that Da Jiang has the confidence to choose to confront the United States head-on and not let others arbitrarily slaughter him for fear of being "choked".

The key to China US technology hegemony lies in independent innovation

The confrontation between Xinjiang and the United States reflects the fierce competition in the field of technology between China and the United States. The United States utilizes technological lockdowns and market advantages to suppress Chinese technology companies, while Chinese companies can only break through through through through independent innovation.

From Huawei to ByteDance, and then to Dajiang, the United States has repeatedly used national machinery to suppress Chinese technology enterprises. But these enterprises also grew and strengthened in the midst of hardship, and gradually established independent technology systems. Despite the long road ahead, Chinese companies are demonstrating to the world with a strong pursuit that nothing can stop the pace of China's technological innovation.

When the constantly escalating technological hegemony between China and the United States comes to an end, the real determining factor will be the independent innovation capabilities of each Chinese enterprise. Only by continuously strengthening technological innovation can China stand firm and take the initiative in this technological competition.

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