The Scoop
American regulators’ and politicians’ fear of Chinese tech is hampering business prospects for Chinese flying camera company HOVERAir, its CEO told Semafor.
The company, which doesn’t brand itself as a “drone” company, didn’t specify which American companies it was in the process of partnering with, but said some deals “ended up getting… paused because of regulatory issues or just general concerns,” MQ Wang said on the sidelines of the UN’s AI for Good summit in Geneva.
“It just sucks, to be honest,” Wang said, in an unusually candid assessment of how the distrust between the superpowers impacts how Chinese tech companies do business around the world. “People think of us as drones, and drones are dangerous.”
While prior HOVERAir products can be sold in the US, its latest model — a light-weight camera that can float and land on water and fly autonomously around a swimmer or boater — is barred from the US market under a December FCC rule that blocks new foreign-made drones from being sold in the US. Drones from Chinese giant DJI are blocked under the same FCC action, stemming from national security concerns. Getting approval to sell in the US remains a “work in progress,” Wang said.
Know More
US lawmakers and regulators have intensified their crackdown on Chinese drones in recent years, even as many creative professionals, hobbyists, and police departments have come to rely on them.
Navigating US-China tensions, Wang added, has gotten “a lot harder” in the 12 years since he started the company, which has US offices and investors.
Even as Beijing has tightened its grip on cross-border tech deals, HOVERAir, which sells in other major global markets including Europe and the Gulf, feels more restraints from the US, which imposes restrictions on investment flows into Chinese tech firms.
“It’s not like China doesn’t allow money to come in,” Wang said, adding “I think it’s the US that’s feeling most threatened.”
Notable
- HOVERAir has made significant inroads in the US: The company was named the official flying camera partner for the US ski and snowboard team for the 2024-25 season.
- If the US is successful in limited access to Chinese drones, it’s unclear “who will serve the consumer and prosumer market,” DroneLife wrote. American drone manufacturers have so far focused on serving government agencies, infrastructure operators, and large businesses.