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Yemen Could See Half A Meter of Rain; Yazidi Civilians Prepare for Brutal Winter Atop Mount Sinjar; The Rise of Drones: A Profile of DJI; American Satellite Detects Heat Flash During Russian Jet Crash. Aired 8:00a-9:00a ET

Aired November 03, 2015 - 8:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[08:00:42] KRISTIE LU STOUT, HOST: I'm Kristie Lu Stout in Hong Kong and welcome to News Stream.

Now experts begin analyzing data from the black boxes from of that Russian airliner that crashed in the Sinai. Investigators may have another

clue. A satellite detected a flash of heat the moment the airliner came down in Egypt.

Plus, this is what it looks like with a year's worth of rain falls on Yemen. The deluge could have dangerous consequences.

(BEGIN VIDEO CLIP)

LU STOUT: And I'm at the home of one of the world's leading drum makers

in China.

(END VIDEO CLIP)

LU STOUT: Investigators are still figuring out what went wrong with the Russian jetliner that crashed in Egypt over the weekend. But there

appears to be new clues.

Now a U.S. official tells CNN an American satellite detected a heat flash midair above the Sinai peninsula around the time of the crash. The

latest is that intelligence analysts, they've ruled out a missile strike. And we'll go through that in just a moment.

Now, this all come as Russia rejects claims that terrorists may have brought down the plane.

Now the president's spokesman denies there is any link between the crash and Russia military role in Syria calling the insinuation

inappropriate.

And investigators have already began examining the data from the black boxes of the Russian airliner.

Now let's bring in Ian Lee for more now from Cairo. An Ian, we're getting more information, more details about that heat flash that was

detected by U.S. officials.

IAN LEE, CNN INTERNATIONAL CORRESPONDENT: That's right, Kristie. And right now we know that American military and intelligence analysts are

going over that signal trying to determine if that happened while the plane was in the air or on the ground.

Now, there's a few theories being thrown out there, one is it could be a missile strike. This is most least likely theory so far, because we know

that ISIS militants in the Sinai just do not have the capabilities or the weaponry to launch a missile over a plane over 30,000 feet.

Now the other theory is that it could be a bomb, an explosion on board the plane. Analysts and investigators on the ground are checking for any

bomb residue on parts of the plane. And they're going to be analyzing that.

So far, though, they haven't detected anything.

The other theory is that it could have been an engine, an engine exploding from a malfunction, causing the plane to go down.

And finally, when the plane hit the ground, we know that there was a fireball. And that could be the reason for that heat signature.

And one of the crucial things is going to be is determining how many heat signatures there were. If there were more than one, then it's likely

that there could have been something when that happened to the plane in the air, but if it is just one, it might be when the plane hits the ground.

Investigators are going to be looking into that. The Egyptians, though, so far have not commented on it. And the Russians have said that

they can neither confirm nor denounce this claim about the heat signature. But right now, officials are looking through those black boxes to try to

determine what actually happened.

LU STOUT: That's right. And that's a new development as well, because Egyptian officials are indeed right now looking through those black

boxes.

Let's go to Barbara Starr, joins us now live from the Pentagon. And Barbara, walk us through this new clue and what we've learned that the heat

flash registered by the U.S. military satellite was registered midair. What can you tell us?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Kristie, we now do have that

additional development that it did happen in midair. U.S. satellite detecting this

infrared heat flash in midair. So, what it tells us is there's some kind of catastrophic event in midair that led to this massive heat flash.

U.S. investigators, military intelligence, the intelligence community, now working to try and determine what they think might have happened. They

have ruled out at this point any indication of a missile. They see no evidence of a missile. It leads them down the road of trying to look at

the possibility if there was a bomb on board, or if they can come up with a plausible scenario for such a catastrophic mechanical event.

Right now, all options remain on the table.

[08:05:15] LU STOUT: All options on the table because the assessment is still preliminary. Barbara Starr reporting live for us from the

Pentagon. Ian Lee earlier from Cairo, a big thank you to you both.

Now nearly all of the victims, 224 people on board this plane, nearly all of them were from Russia, and a memorial has been set up in St.

Petersburg as people lay flowers and light candles in memory of the victims.

As reported, Moscow rejects suggestions that its military action in Syria is linked to the crash. We'll bring you a live report from Russia

later this hour.

Now, an Indian court has sentenced a former Uber driver to life in prison for raping a female passenger who requested a ride through the car

sharing app.

Now the judge handed down the maximum sentence despite pleas from his family for leniency. Now, the December attack gripped the public, sparking

protests and renewing the debate over women's safety in India.

Now authorities were quick to pull Uber cars off the road as part of a temporary ban.

Let's go to our Sumnima Udas who has been following this from New Delhi. She joins us now.

And Sumnima, a life sentence in this very high profile case. Walk us through the verdict.

SUMNIMA UDAS, CNN INTERNATIONAL CORRESPONDENT: Yes, as soon as that was announced, life sentence for the former Uber driver, his two daughters,

his wife and his father completely broke down in court, Kristie. He -- they and the counsel -- defense counsel had been asking for a more lenient

sentence, a maximum of ten years in prison. They'd even -- defense counsel even paraded the family of sorts at the court to show that he was really

the sole breadwinner for the family.

But the judge did not relent. And said life sentence was befitting of the crime that was committed.

Now that is the maximum sentence that can be given to a rape convict. And that is really the result of a protest that we saw back in 2012 when

hundreds of thousands of people were on the streets demanding for stronger laws. That's when these laws were changed.

But until then, until two to three years ago, the maximum sentence any rape convict would have gotten was seven to ten years in prison. So that's

a huge change.

Another thing that has directly impacted this Uber case is the fact that every single rape case, at least in Delhi, has to be fast tracked,

that means there has been a hearing every single day. And that is why we're seeing such a speedy trial in the Uber case and a speedy verdict --

Kristie.

LU STOUT: And Sumnima, what is Uber doing to make it for safe for female

passengers in India?

UDAS: Yeah, Uber is under a lot of scrutiny right after this case, you know, was reported in the media, because this driver had actually been

arrested, accused of rape and had even spent some time in jail before he was hired by Uber.

So there's clearly some sort of lapse there in terms of background checks, as far as the driver is concerned.

Since then, Uber said it has strengthened those procedures. It has also introduced a series of sort of features include an SOS app which

basically contacts the police station here as soon as you press it.

Also is include said a feature where you can send the contact details of the driver, the license plate numbers of the car to five contacts on

your phone. So those are the two features that Uber has added.

LU STOUT: All right. Sumnima Udas reporting live from New Delhi for us. Thank you for that update

Now, South Africa's Supreme Court of appeals has wrapped up a hearing in the Oscar Pistorius case. Now, prosecutors argued that Pistorius should

have been convicted of murder in the shooting death of his girlfriend rather than culpable homicide. They say the trial judge misinterpreted the

law.

Now, it is unclear when the appeals judges will rule.

Now for more, David McKenzie joins me now live from Johannesburg. And David, the appeal started today. What arguments did we hear from the state

prosecutor and the defense?

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: Well, Kristie, the arguments are very technical and often deeply legal in nature, because of

course this hearing is supposed to be on the subject of law, not on the fact of the facts of this case. The judges, the five Supreme Court of

Appeal judges received an abridged version of the trial. They didn't bring any witnesses. But you did see some pretty impassioned pleas from both

sides about why they are correct.

Firstly came the prosecution who really said that the judge got the law wrong. Take a listen.

(BEGIN VIDEO CLIP)

GERRIE NEL, PROSECUTOR: Justice Bauden (ph), what we then say, is we say that (inaudible) rejected as evidence as impossible if the, if the

court took into account the circumstantial evidence. And the court should have rejected as evidence because it was a poor witness, then all that

remains is objective fact. On the objective facts, they just cannot escape the conviction of murder.

(END VIDEO CLIP)

[08:10:18] MCKENZIE: Now, the murder conviction, of course, is more serious than the culpable homicide which Oscar Pistorius was convicted on.

He is in house arrest now in Pretoria. It was interesting to see that the defense attorney, the

defense advocate, Barry Roux, had far more intense, in fact, and in depth questioning during these proceedings.

Now, legal experts I talk to say you shouldn't read too much into that. But let's listen to an exchange between the defense and the Supreme

Court.

(BEGIN VIDEO CLIP)

BARRY ROUX, DEFENSE LAYWER: Each version is that he believed his life was in danger when he discharged the shots. So, you have to read into this

-- it's not...

UNIDENTIFIED MALE: That must be bona fide.

ROUX: But that was found to be bone fide.

(END VIDEO CLIP)

MCKENZIE: So, really, you saw there, both sides of the argument over the one issue that Oscar Pistorius was, according to the defense, feeling

his life was threatened, by discharging a weapon. He didn't necessarily commit murder. And that the judge was correct.

And on the prosecution side, they are saying, in fact, the judge got the law completely wrong.

Now, that have reserved the judgment which means that it could take several weeks for them to come back and give their arguments. It could see

Pistorius going back to prison for up to 15 years -- Kristie.

LU STOUT: All right, David McKenzie there reporting on the appeal hearing earlier today, thank you, David.

And you're watching News Stream. And still ahead, a rare tropical cyclone tears through central Yemen. And now the war-torn country is

dealing with flash flooding and possible mudslides.

And in another country torn by conflict, Yazidi families are bracing for another harsh winter on top of Iraq's Mount Sinjar while fighters work

to push ISIS out.

(COMMERCIAL BREAK)

LU STOUT: Welcome back.

Now, a rare tropical cyclone is battering war-torn Yemen. The storm made landfall along the central coast early on Tuesday, forcing thousands

of people to flee their homes.

Now, it is expected to drop two to three year's worth of rain in just a single day. Now meteorologist Chad Myers is tracking it for us from the

World Weather Center. He joins us now. And Chad, just how bad is it going to get there?

CHAD MYERS, CNN METEOROLOGIST: I think the flooding is going to be as bad as they've ever seen. I always say that this is the first storm ever

to hit the area, but really records only going back about 30 years which seems to boggle my mind. How do you only have 30 years of data here?

We've lost some data, obviously, in some of the conflicts.

Here we go, probably a quarter of a meter already on the ground and another quarter of a meter to go. When you put some of that in the desert

it kind of soaks in, at least some of it. But we don't have a desert north of the coastline line here, we have a mountain range.

Now, I use the word Mountain loosely -- 2,000 meters high. But if you put a half a meter on top of a 2,000 meter hill, it's going to run back

downhill and it is running back down rather quickly. We have dramatic pictures here of what 200 to 250 millimeters of rainfall look like here.

And it is going to be a day just like this for many people as the rain continues

This is the rain that fell on top of the mountain running back down through. This is a flash flood. But it is a freshwater flood. There was

also some storm surge with the saltwater being pushed onshore. Waves there were upwards between 5 and 10 meters coming on shore, crashing on shore

right there right al-Mukala (ph).

This is the area that is really I believe now the hardest hit and where we will see the most devastation from this.

Let's go back to the map and I'll show you why.

We talk about the population density right along the coast. Al-Mukala (ph) is a ship city, it is a port city. They made their own port right

through here so that the Gulf of Aden can go in there. That's where the ships get in and

out.

But on the flip side of this, north of this is where the mountains are, all

running back down into these cities, all running back down to pictures that look like this.

Stunning -- I mean, this looks like somewhere in central Europe, a couple years ago, when the flooding was so bad.

We see it here in a desert community. You think the rain would soak in, well it doesn't get soaked in, it gets super saturated. The ground and

the mud and the sand all run right back downhill. And this is what they're dealing with right now, Kristie.

LU STOUT: Yeah, stunning pictures, as you point out, of a water- logged community and this is a desert conditions normally. Absolutely

extraordinary. Chad Myers reporting live for us, thank you.

Now, it is billed as the race that stops the nation. And this year's Melbourne Cup in Australia, it delivered with a spectacular finish. And

for the first time in its history, a female jockey rode home with the title.

Australian jockey Michelle Payne and her horse The Prince of Penzance won the

race.

Now, the bookies have placed little faith in a win for Prince of Penzance, offering odds of up to 100 to 1. But the horse and its

victorious jockey proved them wrong.

Now World Sport will have much more on Payne's historic win, that's coming up in just 20 minutes from now.

Now, Chinese lawmakers are warning online shoppers beware of what you buy. About 40 percent of the items in China's online trade are fakes. A new report urges tightening managing of the online market.

Now, just earlier this week, fake Apple Watches flooded Chinese ecommerce sites a month before the real version was released.

Online retail is a huge industry and Chinese lawmakers want to keep an eye on it.

Now, data shows China's online shoppers are on course to spend more than $600 billion this year.

You're watching News Stream, still ahead on the program, as Yazidi fighters prepare to take on ISIS, their families say the coming months on

Mt. Sinjar will bring an entirely new threat.

(COMMERCIAL BREAK)

[11:20:43] LU STOUT: Coming to you live from Hong Kong, you're back watching News Stream.

Now in Nepal, a rescue operation is under way after a bus skidded off a road and plunged 200 meters down a hill. Police say at least 30 people

were killed and 35 were injured.

It happened in a village about 30 kilometers north of the capital Kathmandu and police say the bus was overcrowded. And people were even

riding on the roof possibly causing the bus to tip over.

In Iraq, Yazidi families forced from their homes by ISIS are preparing to spend another winter in tents. Now Kurdish forces backed by Yazidi

fighters hope to reclaim the town of Sinjar from ISIS. But until then, the families will have to make due in the nearby mountains.

And for her exclusive report, senior international correspondent Nima Elbagir traveled to Mt. Sinjar. She joins us now live from Dohuk (ph),

Iraq.

And Nima, just how are Yazidi families preparing for yet another winter outdoors?

NIMA ELBAGIR, CNN INTERNATIONAL CORRESPONDENT: It is already difficult, in terms of the conditions out there, and we are only just in

the beginning of November. One can only imagine what it's going to be like when it really

starts getting cold out there. About 15 months ago, these people really caught the world's attention, but they are still there, and they are still

suffering.

Take a look at this, Kristie.

(BEGIN VIDEOTAPE)

NIMA ELBAGIR, CNN INTERNATIONAL CORRESPONDENT: Mt. Sinjar, these desolate slopes claimed the lives of dozens of children last year. This

year, the Yazidis are bracing themselves for the worst.

UNIDENTIFIED FEMALE (through translator): The mountain is so cold. You can see there is nothing up here.

ELBAGIR: Fohaz (ph) is 30. She and her nine daughters escaped the ISIS onslaught last year. This year, she says, she worries it will be the

mountain winter that kills them.

Fohaz (ph) just telling me that 17 of them live that this tiny tarpaulin lined tent. And everything that you see here, the clothing that

they're wearing, the pots, the pans, this is it. This is all that they have in the world. And they are facing another incredibly brutal up here

on the mountain.

Smoke plumes rise over Sinjar, coalition air strikes intensifying as preparations begin for the push to retake the town.

Sinjar, and the mountain that looms over it, are at the heart of the homeland of the Yazidi minority. In the mountain's foothills, the Yazidi

men are training for the fight ahead.

The mountain shelters, their holiest shrine, the shrine of the founder Shoaf el-Dine (ph). It also falls along a crucial ISIS supply route,

linking ISIS strongholds of Iraq and Syria.

Last year, the world watched as thousands of Yazidis were massacred during the ISIS push for Sinjar. Hundreds of Yazidi girls are still held

by ISIS forces as slaves.

Boha (ph) believes her sister and two teenage nieces are among the captives. Every moment in her day, no matter the task, she told us is

spent thinking about them.

As the offensive draws nearer, she worries they're still in the town below.

UNIDENTIFIED FEMALE (through translator): Where are they? Will they take them even further away? Will they be caught in the fighting?

ELBAGIR: Below, the Yazidi soldiers are standing guard. Many of the fighters have families up on the mountain slopes above.

Today, a local folk singer has come to rally them on. But they know too well what they're fighting for: their very existence.

Ill-equipped and poorly supplied, the force commander tells us they need all

the help they can get.

UNIDENTIFIED MALE (through translator): We need traditional support. We need heavy weaponry, especially now.

We stood against ISIS with nothing but machine guns. We withstood a huge enemy, and it's too strong. We need your help.

ELBAGIR: For now, the Yazidis are clinging on, desperate to stay within sight of their abandoned homes.

Zero hour is approaching. The Yazidis are getting ready. Everyone hopes

this will finally be over and soon. Even as they prepare themselves for what awaits them in the town below.

(END VIDEOTAPE)

[08:25:15] ELBAGIR: And so much of these families' hopes is pinned on the success of that offensive. But given what we've seen in other towns

that have been liberated after being ISIS held, there is no guarantee that those families

could be in their homes anytime before the end of this coming winter.

Kobani still hasn't been cleaned out of the ISIS booby traps and the explosive devices that were left behind. So there really are still

difficult times ahead, Kristie.

LU STOUT: Yeah, difficult times ahead. These families just -- Yazidi families desperate just to return home, but their home is still being

seized by ISIS.

Nima Elbagir reporting for us live in Iraq, thank you, Nima.

Now let's turn to the United States and the race for the White House. It appears that Donald Trump's lead is slipping away in the Republican

race. A national poll from NBC News and The Wall Street Journal shows Ben Carson ahead of Trump 29 percent to 23 percent.

Now, Trump still holds the lead, though, in the early voting state of New Hampshire with 26 percent support to Carson's 16. That's according to

a Monmouth University poll.

Marco Rubio has surged to third.

Now, no answers yet but some new clues as Russians mourn those killed in Saturday's Metrojet disaster. And after the break, we'll bring you a

live report from St. Petersburg.

Also ahead, Buddhist monks are highly respected in Myanmar, but complaints now as minority Muslims say they are suffering discrimination.

(COMMERCIAL BREAK)

[08:30:13] LU STOUT: I'm Kristie Lu Stout in Hong Kong. You're watching News Stream. And these are the world headlines.

Now we have new information about the heat flash that a U.S. satellite detected over the Sinai peninsula when a Russian passenger jet crashed. A

U.S. official says the signal occurred midair and intelligence analysts have ruled out a

missile strike.

Now in Egypt, investigators have begun examining the data from the black boxes of the airliner.

In India, a former Uber driver found guilty of raping a female passenger has been sentenced to life in prison. Now, the judge gave the

defendant the maximum sentence ignoring pleas for leniency from his family. The attack in December sparked protests and led to a temporary ban on Uber

drivers.

South Africa's Supreme Court of appeals has wrapped up a hearing in the Oscar Pistorius case. Prosecutors argue that Pistorius should have

been convicted of murder in the shooting death of his girlfriend rather than culpable homicide. They say the trial judge misinterpreted the law.

It's unclear when the appeals judges will rule.

Controversial Iraqi political figure Ahmed Chalabi has died of a heart attack at his Baghdad home, that's according to a senior Iraqi military

official.

Chalabi was a key supporter of the 2003 U.S. invasion of Iraq. He provided intelligence to Washington about Saddam Hussein's alleged weapons

of mass destruction. Chalabi's claims were later discredited.

Now, Russia is in mourning for the 224 victims in the passenger jet that crashed in Egypt over the weekend. An investigation is still under

way. But Russia rejects claims that the plane was destroyed by terrorists.

Now, let's bring in Nic Robertson. He joins us from the airport in St. Petersburg.

And Nic, new U.S. intelligence analysis has ruled out a missile strike. And that seems to be in line with what Russian authorities have

said, that no terror attack brought down this plane.

NIC ROBERTSON, CNN INTERNATIONAL CORRESPONDENT: Well, what Russian authorities are saying is that Egypt is leading the investigation, that

it's too early to form any conclusions. The spokesman for President Putin said that this -- the plane crash shouldn't be associated with Russia's

military inside Syria. They're saying that people shouldn't jump to conclusions, and they're saying that any sort of analysis between Russia's

military activities in Syria and the plane coming down are speculation that should be avoided. It's inappropriate. He said.

We've also heard from Russian officials is that they will neither confirm nor deny this information about a heat signature seen by the

aircraft. This, as we hear now from U.S. intelligence sources. That they are ruling out a missile strike. They're calling it a catastrophic in-

flight event. They can't rule out the possibility of a bombing at the moment.

But that's -- that is part of the ongoing investigation. And that's - - it seems to be why Russian officials continue to point to the fact that the black boxes are only just beginning to be opened. And it's far too

early, because of all of these elements of an investigation, the technical analysis of the

data to see if there's any explosive residue on any of the debris recovered from the aircraft.

For all these reasons, that seems to be why Russia is putting forward this very clear position at the moment, too soon to say anything

definitively, Kristie.

LU STOUT: All right, too soon to say. Nic Robertson reporting on Russia's take of the investigation that still under way. Thank you very

much indeed for that, Nic.

Now Myanmar is just days away from holding its general election, but one issue seems to be dominating many political discussions.

Now although the country is overwhelmingly Buddhist, a group of nationalist monks say that their traditions are threatened by Islam. Our

Ivan Watson reports.

(BEGIN VIDEOTAPE)

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: A street party for the Full Moon Festival which, up until a few years ago, was one of the world's

most isolated countries. On this Buddhist holiday called Tadiyuk (ph), it looks like the

whole city is out celebrating in the streets and praying in the temples.

Around 90 percent of this country is believed to be Buddhist, and yet some powerful voices here insist Myanmar's most popular religion is in

danger.

Who is threatening Buddhism in this country?

Muslims, says U Wirathu a radical Buddhist monk who leads a group called the Committee for the Protection of Nationality and Religion.

[08:35:05] U WIRATHU, COMMITTEE FOR THE PROTECTION OF NATIONALITY AND RELIGION (through translator): Muslims threaten Buddhism through marriage

convergence and they take many wives and have many children. Their population grows and it threatens us. And they are violent.

WATSON: Muslims only make up an estimated 4 percent of the population, and yet U Wirathu is calling for a boycott of Muslim-owned

businesses in Myanmar.

Critics call this hate speech, and some accuse U Wirathu of inciting violence.

This is what happened two years ago in the central town of Mutila (ph) when a dispute in the market between Muslims and Buddhists exploded, days

of intercommunal violence left scores of people dead.

Amid the killing, this Buddhist monastery became a sanctuary. For days, the monks here sheltered more than 900 Muslims. The abbot tells me

he protected them from a machete wielding mob at the monastery gates.

"This is all political, he says. "There are actually no problems between the religious communities. But it has been influenced by political

groups."

Seated next to him, leaders of the town's Muslim community who say the anti-Muslim boycott has pushed many Muslim families out of this town.

It's been two years since violence here claimed dozens of lives, and as you can see, mosques like this one are still broken and looted, a symbol

of the discrimination that the Muslim minority in this community say they face in modern day Myanmar.

Of the 12 mosques that once operated here, more than half are still in ruins or have been boarded up by the town's authorities. Due to

overcrowding, the town's remaining Muslims pray in shifts at one of the few mosques still

functioning here. The mosques now protected by razor wire.

There is still tension.

UNIDENTIFIED MALE: Yeah, of course, of course.

WATSON: And how do you feel as a Muslim?

UNIDENTIFIED MALE: Yeah, it's still uncomfortable.

WATSON: The monastery where U Wirathu teaches his anti-Muslim rhetoric

is decorated with Islamophobic propaganda, a message of hatred and intolerance against an entire religious community that is being passed on

to future generations.

Ivan Watson, CNN, Maqtila (ph), Myanmar.

(END VIDEOTAPE)

LU STOUT: You're watching News Stream. And coming up, whether it's for

business or for recreation, more people are looking to get their hands on a drone. I'll pay a visit to the world's leading consumer drone maker in

China.

(COMMERCIAL BREAK)

LU STOUT: Welcome back, now all this week on News Stream we're focusing on the rise of drones. Now, consumer drones are becoming big

business. And big businesses are hoping to deploy drones.

Now, this rapid growth in the industry is quickly turning pioneers into corporate giants.

Now, I recently paid a visit to the company that holds a dominant share of the consumer drone market, the makers of this drone right here,

DJI.

(BEBING VIDEOTAPE)

LU STOUT: From being coveted by Cartman on South Park to crashing on the lawn of the White House, if you see a drone, it's probably made by DJI.

The company behind the distinctive Phantom is the leader in consumer drones with an estimated 70 percent of the market.

But what you may not realize is that this industry pioneer is based in China.

UNIDENTIFIED MALE: We base our technology and manufacturing and R&D here in

China because everything is much more accessible, just a quicker developed product.

LU STOUT: Being based in china has its advantages. DJI can design a part in the morning, drive it to nearby factory and have it manufactured

that afternoon.

And looser regulations than the U.S. mean it is simpler for DJI to get their

drones in the air in China.

[08:40:12] UNIDENTIFIED MALE: It is easier to go out and just test and fly here. Whereas, if you're in the U.S., you do have to get licensing

and all that to be able to do things commercially. That is one of our advantages.

LU STOUT: The U.S. has begun allowing a limited number of companies to test commercial applications for drones. The U.S. is also DJI's biggest

market.

But according to one analyst, being a Chinese company could prove to be a problem.

COLIN SNOW, DRONE ANALYST: it kind of blocks them out a little bit from getting involved in any government projects because, for example,

NASA, is prohibited from doing any work directly with DJI.

So, in the commercial world, where we'll see more and more aircraft being developed, the disadvantage is for DJI.

LU STOUT: DJI has a commanding lead in the consumer drone market, making it one of a new wave of Chinese companies that are global giants.

And DJI says it is down to the company's history of innovation.

UNIDENTIFIED MALE: We've innovated with our Phantoms, with our drone line, with our professional cinema line of equipment. And I mean, that

just -- it comes down to us being seen not as a Chinese company, but as an international player.

(END VIDEO CLIP)

LU STOUT: Now, some of you may see drones as little more than gadgets, but one manufacturer thinks the future will follow what we've seen

with smartphones: one filled with apps that will make them even more versatile.

Now, we're going to be speaking with Chris Anderson, the CEO of 3D Robotics, one of the leading consumer drone making companies. That's in

our series The Rise of Drones continues at this time tomorrow only on CNN.

And that is News Stream. I'm Kristie Lu Stout. But don't go anywhere, World Sport with Amanda Davies is next.

END