About 70% of consumer drones sold worldwide are made in Shenzhen, the home turf of drone giant DJI, according to a local official.

Shenzhen, a megacity in China’s manufacturing heartland the Greater Bay Area, has become the world’s most important drone production base, with more than 360 companies in the drone industry, Shenzhen vice mayor Wang Lixin told attendants at the Drone World Congress yesterday.

The city produced 60% of industrial drones sold domestically and 70% consumer drones sold worldwide last year. The total annual transaction volume for drones made in Shenzhen reached RMB 40 billion, according to Wang.

Despite the market position of Shenzhen-based drone makers, the city’s drone industry could be impacted by escalating tensions between China and the United States.

Earlier last month, the US government reportedly sent out a memo warning of potential security concerns regarding drones made by Chinese manufacturers.