UNCLASSIFIED//LAW ENFORCEMENT SENSITIVE
Homeland Security Investigations
SAC Intelligence Program Los Angeles
INTELLIGENCE BULLETIN
ICE-IL-17-0019

(U) Da Jiang Innovations (DJI) Likely Providing U.S. Critical
Infrastructure and Law Enforcement Data to Chinese Government
9 August 2017
(U//FOUO) Special Agent in Charge Intelligence Program (SIP) Los Angeles is generating this
product in response to several requests for information received from the intelligence and law
enforcement communities. It is based on information derived from open source reporting and a
reliable source within the unmanned aerial systems (UAS) industry with first and secondhand
access. The date of information is 9 August 2017.
(U//LES) SIP Los Angeles assesses with moderate confidence that Chinese-based company DJI
Science and Technology is providing U.S. critical infrastructure and law enforcement data to the
Chinese government. SIP Los Angeles further assesses with high confidence the company is
selectively targeting government and privately owned entities within these sectors to expand its
ability to collect and exploit sensitive U.S. data.
(U) Since 2015, DJI has targeted a number of U.S. companies in the critical infrastructure and
law enforcement sectors to market its UAS. As of July 2017, at least ten large companies and
organizations operating in the railroad, utility, media, farming, education, and federal law
enforcement sectors have already purchased and begun using DJI UAS. The most frequent uses
include mapping land, inspecting infrastructure, conducting surveillance, and monitoring
hazardous materials. 1
(U//LES) DJI sells group one category (under five pounds) UAS intended for consumer and
professional use. The UAS operate on two Android smartphone applications called DJI GO and
Sky Pixels that automatically tag GPS imagery and locations, register facial recognition data
even when the system is off, and access users' phone data. Additionally, the applications capture
user identification, e-mail addresses, full names, phone numbers, images, videos, and computer
credentials. Much of the information collected includes proprietary and sensitive critical
infrastructure data, such as detailed imagery of power control panels, security measures for
critical infrastructure sites, or materials used in bridge construction. According to the source of
information (SOI), DJI automatically uploads this information into cloud storage systems located
in Taiwan, China, and Hong Kong, to which the Chinese government most likely has access. 2
SIP Los Angeles assesses with high confidence a foreign government with access to this
information could easily coordinate physical or cyber attacks against critical sites.

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— (U//LES) After downloading DJI applications, users are prompted to acknowledge DJI's

terms and conditions, which grant DJI permission to own and exploit user data. The
agreement reads, "Please note that if you conduct your flight in certain countries, your
flight data might be monitored and provided to the government authorities according to
local regulatory laws." 3

— (U) In April 2016, a DJI spokesperson announced in a briefing for Chinese and foreign

journalists that the company complies with Chinese government requests to hand over
data collected in China, according to the New York Times. The same article stated DJI
could also give the government data from flights in Hong Kong. The spokesperson
revealed for the moment DJI was uncertain what they would decide to do with the data
and which government departments they would give it to because it was a continuing
discussion. 4

— (U//FOUO) In August 2017, the U.S. Army issued a memo to its units to immediately

discontinue the use of DJI UAS due to an increased awareness of cyber vulnerabilities
associated with DJI products. Although the vulnerabilities are not specified in the memo,
it could refer to how DJI is using the data collected. The memo also references a May
2017 U.S. Navy memo addressing operational risks related to DJI products. 5

— (U//LES) The Chinese government is using DJI UAS as an inexpensive, hard-to-trace

method to collect on U.S. critical assets, according to the SOI. The Chinese government
directorates most likely receiving the data from DJI's cloud are the offices responsible for
defense, critical infrastructure, traffic controlling, and cyber offense, according to the
same source. 6

(U) DJI's Target Customers
(U//LES) DJI targets key federal, state, and local law enforcement entities through exhibits at
trade shows across the United States. These shows are an attractive outlet for DJI to market its
UAS since a large number of resellers and product representatives are present at each show.
Since 2015, DJI has specifically targeted Sheriff's Departments and Search and Rescue teams
that attended the shows. 7
— (U) In January 2017, the Los Angeles Sheriff's Department announced they would begin

deploying UAS under limited circumstances, including search and rescue missions,
explosive ordnance detection missions, disaster response, barricaded suspects, hostage
situations and other high-risk tactical operations, hazardous materials incidents, and fire
related incidents. 8 The Department is using a DJI Inspire UAS. 9

— (U//LES) The Department of Homeland Security is currently building a National Bio and

Agro-Defense Facility in Manhattan, Kansas to study diseases that threaten America's
animal agricultural industry and public health. 10 The contractor building the facility is
using DJI UAS to assist with construction layout and provide security during
construction. 11

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(U//LES) SIP Los Angeles assesses with high confidence that outside of DJI's goal to attain law
enforcement customers, DJI's criteria for selecting accounts to target appears to focus on the
account holder's ability to disrupt critical infrastructure. As a result, DJI has amassed customers
such as American WaterUSPER, Union PacificUSPER, and American Electric PowerUSPER, some of
the biggest utility and transportation companies in the United States. 12
— (U//LES) DJI is particularly interested in exploiting data from two critical infrastructure

sectors: U.S. railroads and utilities. In early 2017, the company invited senior level
management from critical infrastructure sectors to a three-day conference at its new
innovation center in Silicon Valley, California. The 12,000 square foot facility is the
largest UAS training center on the West Coast and is designed for research, development,
and training. DJI is inviting key customers to attend training sessions and conferences to
further encourage U.S. companies to purchase and use DJI systems. 13

— (U//LES) Specifically, DJI is focused on targeting utility companies responsible for

providing drinking water in New Jersey, New York, Los Angeles, and Chicago, as well
as railway companies in Omaha, Nebraska; Los Angeles, California; and Dallas-Fort
Worth, Texas. 14

— (U//LES) DJI is also interested in targeting Fort Riley, Kansas and the Tennessee-based

Milan Army Ammunition Plant where munitions and weapons materiel are stored. 15

(U//LES) Furthermore, the Chinese government is likely using information acquired from DJI
systems as a way to target assets they are planning to purchase. For instance, a large familyowned wine producer in California purchased DJI UAS to survey its vineyards and monitor
grape production. Soon afterwards, Chinese companies began purchasing vineyards in the same
area. According to the SOI, it appeared the companies were able to use DJI data to their own
benefit and profit. 16
— (U//LES) In 2017, DJI began offering clients a normalized difference vegetation index

(NDVI) infrared scanner to use with UAS. The NDVI picked up reflective images of
leaves to calculate the nitrogen levels of plants. The device provided the user with details
such as how much nitrogen to add to the soil to optimize plant growth. It also collected
information on the location and lifecycle stages of food. 17

— (U//LES) As of May 2017, the only customers using the NDVI scanner were wine

producers along the coast of California; however the scanner would work with cash
crops. SIP Los Angeles assesses with low confidence if the cash crops industry began
using the scanner, it could allow China the opportunity to influence the cash crop market
and futures. 18 SIP Los Angeles further assesses with low confidence it could provide
China insider information on the ability to disrupt and degrade the United States' food
supply.

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(U) Dumping Techniques
(U) In 2015, DJI aggressively dropped its prices by
(U) What is "Dumping"?
as much as 70 percent in less than one year,
effectively forcing its main competitors out of the
(U) The illegal practice of exporting a
market. Since that time, DJI's biggest competitors,
USPER
product at a price lower than the cost to
Parrot in France, 3D Robotics
in the U.S., and
manufacture the product or lower than
Yuneec in China, all stopped production due to their
19
the price the manufacturer would charge
inability to match DJI's prices. Using dumping
techniques, DJI was able to sell category one UAS in in its own home market.
the United States for approximately $900 USD.
Comparatively, other group one category UAS with the same level of technology sold for $3,500
USD. 20
— (U) Since DJI creates, manufactures, and tests its UAS in its own facilities in Shenzhen,

it is able to keep costs much lower than its foreign competitors, who have higher
operating costs and often have to travel across the world to build their products. 21

— (U) Lower manufacturing costs, combined with illegal dumping tactics, have effectively

given DJI a monopoly in the category one UAS market in the United States. As a result,
U.S. companies have fewer options and are more likely to purchase DJI UAS.

— (U//LES) From August 2016 to August 2017, DJI imported 10,321 shipments into the

United States, 1,741 of which entered through the Ports of Los Angeles and Long Beach.
Comparatively, from August 2015 to August 2016, DJI imported 2,873 shipments into
the United States. 22 In a one year period, DJI was able to drastically increase shipments
of UAS to the United States market, likely due to its low prices and lack of competition.

(U) Future Plans
(U//LES) In February 2017, DJI began developing an application that would digitize UAS pilot
logs. The app would store the pilot's name, flight time, flight hours, flight route, and mission
planning details. Once the app is fully developed, it will send pilot and flight information to the
cloud based storage system where all the other information is stored. 23
(U//LES) As of May 2017, DJI was attempting to add satellite communications to their UAS so
operators were not reliant on cellular towers for the control stations. Satellite communications
would allow real-time transmissions of information in rural areas or areas without adequate
cellular towers. 24

(U) Analytic Comment
(U//LES) SIP Los Angeles assesses with high confidence the critical infrastructure and law
enforcement entities using DJI systems are collecting sensitive intelligence that the Chinese

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government could use to conduct physical or cyber attacks against the United States and its
population. Alternatively, China could provide DJI information to terrorist organizations, hostile
non-state entities, or state-sponsored groups to coordinate attacks against U.S. critical
infrastructure. The UAS capture close-up imagery and GPS information on water systems, rail
systems, hazardous material storage systems, first responders' activity, and construction of
highways, bridges, and rails.
(U) Tracked by: ICE-10000-17; ICE 15000-17
(U) Reporting Notice: This Intelligence Bulletin was prepared by Homeland Security
Investigations, Los Angeles. Comments and queries may be directed to the Homeland Security
Investigations Los Angeles Chief Intelligence Officer Mark Porter at
INTEL.SACLA@ice.dhs.gov, or by phone at (562) 256-3411. The Joint Intelligence Operations
Center (JIOC) is available 24/7 at 202-732-5156/57, NSTS: 263-2178.
(U) FEEDBACK: For general comments or questions related to the dissemination of this
document, please e-mail the HSI Intel Production inbox at HSIIntelProduction@ice.dhs.gov.

1 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
2 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
3 (U) Internet Site; Author: Paul Mozur; Site: NY Times; Title: (U) China Drone Maker Says it May Share Data with State;
Posting Date: 20 Apr 2016; Page/Paragraph Number: N/A; URL: https://www.nytimes.com/2016/04/21/world/asia/dji-droneschina.html; Date of Access: 25 Jul 2017.
4 (U) Internet Site; Author: Paul Mozur; Site: NY Times; Title: (U) China Drone Maker Says it May Share Data with State;
Posting Date: 20 Apr 2016; Page/Paragraph Number: N/A; URL: https://www.nytimes.com/2016/04/21/world/asia/dji-droneschina.html; Date of Access: 25 Jul 2017.
5 (U) Originator: Department of the Army; Report Number: N/A; Tracking Number: N/A; Pub Date: 2 Aug 2017; DOI: 2 Aug
2017; Title: (U//FOUO) Discontinue Use of Dajiang Innovation (DJI) Corporation Unmanned Aircraft Systems; Page/Paragraph
Number: N/A; Overall Source Classification: Unclassified//For Official Use Only.
6 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
7 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
8 (U) Originator: County of Los Angeles Sheriff's Department; Report Number: 761551 N25A- SH-AD (11/90); Tracking
Number: N/A; Pub Date: 10 Jan 2017; DOI: 10 Jan 2017; Title: (U//FOUO) Utilization of Unmanned Aircraft System (UAS)
Platform; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified.
9 (U) Originator: Los Angeles Sheriff's Department Criminal Intelligence Bureau Intelligence Analyst; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: 3 Aug 2017; Title: (U) E-Mail on LASD Drones;
Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
10 (U) Internet Site; Author: N/A; Site: DHS; Title: (U) National Bio and Agro-Defense Facility; Posting Date: N/A;
Page/Paragraph Number: N/A; URL: https://www.dhs.gov/science-and-technology/national-bio-and-agro-defense-facility/; Date
of Access: 3 Aug 2017.
11 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.

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12 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
13 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
14 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
15 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
16 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
17 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
18 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
19 (U) Internet Site; Author: April Glaser; Site: Recode; Title: (U) DJI is Running Away with the Drone Market; Posting Date:
14 Apr 2017; Page/Paragraph Number: N/A; URL: https://www.recode.net/2017/4/14/14690576/drone-market-share-growthcharts-dji-forecast; Date of Access: 24 Jul 2017.
20 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
21 (U) Internet Site; Author: April Glaser; Site: Recode; Title: (U) DJI is Running Away with the Drone Market; Posting Date:
14 Apr 2017; Page/Paragraph Number: N/A; URL: https://www.recode.net/2017/4/14/14690576/drone-market-share-growthcharts-dji-forecast; Date of Access: 24 Jul 2017.
22 (U) Originator: U.S. Immigration and Customs Enforcement Data Analysis and Research for Trade Transparency System
(DARTTS); Report Number: N/A; Tracking Number: N/A; Publication Date: N/A; Date of Information: 9 Aug 2017; Title: N/A;
Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
23 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.
24 (U) Originator: Immigration and Customs Enforcement, HSI Los Angeles CPIC Source of Information; Report Number: N/A;
Tracking Number: N/A; Publication Date: N/A; Date of Information: Dec 2016 - Jul 2017; Title: (U) Interview with CPIC
Special Agent; Page/Paragraph Number: N/A; Overall Source Classification: Unclassified//Law Enforcement Sensitive.

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