DJI loses lawsuit over Pentagon’s ‘Chinese military company’ list

It’s been nearly a year since DJI sued the Department of Defense over its designation as a “Chinese military company.” On Friday, a judge ruled against the drone maker. US District Judge Paul Friedman said the DoD presented enough evidence that DJI contributes to the Chinese military.

“Indeed, DJI acknowledges that its technology can and is used in military conflict but asserts that its policies prohibit such use,” Friedman wrote in his opinion. “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.”

DJI challenged the designation in October 2024. It told the court it is “neither owned nor controlled by the Chinese military.” The company claimed in its filing that it suffered “ongoing financial and reputational harm” as a result of the inclusion. The designation can prevent companies from accessing grants, contracts, loans and other programs.

The drone maker has a contentious history with the US government. The Department of Commerce added it and 77 other companies to its Entity List in 2020, effectively blocking US businesses from dealing with them. A year later, the Treasury Department included DJI on its “Chinese military-industrial complex companies” list. That designation was for its alleged involvement in the surveillance of Uyghur Muslim people in China. Last year, US customs began holding up DJI’s consumer drones at the border.

The company now faces a potential import ban in the US by the end of this year. The ban was initially scheduled for 2024. But a clause in the $895 billion US Defense Bill gave it a year to prove that its products don’t pose a national security risk. In March, DJI pleaded with five national security agencies (DHS, DoD, FBI, NSA, and ODNI) to begin evaluating its products “right away.”