McKinney, Texas — A Texas-based drone manufacturer and a smart home device firm are facing legal scrutiny for allegedly concealing their connections to the Chinese Communist Party and jeopardizing American consumer data. Attorney General Ken Paxton filed a lawsuit against Anzu Robotics, claiming the company misrepresented itself as an American entity while actually distributing products sourced from a Chinese manufacturer under U.S. sanctions.

The lawsuit, lodged in U.S. District Court for Collin County, outlines what Paxton describes as a deliberate scheme to bypass U.S. governmental restrictions placed on DJI, a Chinese drone manufacturer closely linked to the Communist Party. The suit alleges that Anzu Robotics is essentially selling rebranded DJI drones, offering minimal modifications to evade detection.

Paxton characterized the drones as “a 21st-century Trojan horse,” suggesting that they could potentially facilitate data collection by the Chinese government. At a press conference introducing the lawsuit, he expressed concern over the broader implications for national security, emphasizing the risk of foreign surveillance.

This lawsuit is part of a broader strategy by the Texas Attorney General’s office to combat companies with connections to the Chinese government. Earlier this week, Paxton also filed charges against TP Link, a supplier of Wi-Fi routers and smart home devices, alleging that the company’s products, despite being labeled “Made in Vietnam,” have deep ties to Chinese production networks. According to the legal filing, this exposes consumers to significant cybersecurity threats.

Governor Greg Abbott has officially updated Texas’ list of prohibited firms to encompass both DJI and TP Link, reflecting ongoing efforts to mitigate national security risks associated with foreign technology companies. In a recent disclosure from the U.S. Department of War, DJI was identified as actively supporting the Chinese Communist Party, further complicating the landscape for drone manufacturers operating in the United States.

The Commerce Department has also placed export restrictions on DJI in response to ongoing concerns about the company’s operations and affiliations. In a 2021 assessment, the Treasury Department categorized DJI among firms implicated in monitoring and suppressing ethnic minorities in China, particularly Muslim Uyghurs.

According to the recent lawsuit, Anzu Robotics drones are virtually indistinguishable from their DJI counterparts, utilizing the same hardware and software. The only differences cited are cosmetic, claiming that the drones feature a green paint job and an American label.

Efforts to obtain comments from both Anzu Robotics and TP Link have been unsuccessful. The outcome of these lawsuits could have lasting implications for consumer safety and national security as officials continue to scrutinize the influence of Chinese technology in the U.S. market.