A federal judge has upheld the U.S. Department of Defense’s decision to designate drone manufacturer DJI as a Chinese military company, rejecting the company’s bid to be removed from the list.
In a ruling issued Friday, U.S. District Judge Paul Friedman said the Pentagon had provided “substantial evidence” that DJI contributes “to the Chinese defense industrial base.” He pointed to evidence of modified DJI drones being used in the war in Ukraine, writing that “whether or not DJI’s policies prohibit military use is irrelevant. That does not change the fact that DJI’s technology has both substantial theoretical and actual military application.”
The court, however, did reject some of the Defense Department’s other arguments for keeping DJI on the list.
DJI, the world’s largest consumer drone maker, was first added to similar lists by the Commerce and Treasury Departments before being placed on the Pentagon’s list in 2022. The company filed suit last year, arguing it is “not owned or controlled by the Chinese military” and that it manufactures drones for consumer and commercial use, not military purposes. It also claimed that the designation caused “ongoing financial and reputational harm, including lost business.”
Following the ruling, DJI told Reuters it was considering its legal options and criticized the decision as being “based on a single rationale that applies to many companies that have never been listed.”
The company faces additional challenges in the United States beyond this lawsuit. Starting in December, DJI could face a ban on sales unless a national security review determines its drones do not “pose an unacceptable risk to the national security of the United States.”
