Kathrine Frich
The company claims this designation is inaccurate and has caused substantial financial harm.
DJI, the world’s largest drone manufacturer based in China, has filed a lawsuit against the U.S. Department of Defense, challenging its inclusion on a blacklist of companies suspected of working with the Chinese military.
Both Financial and Reputational Impacts
The company claims this designation is inaccurate and has caused substantial financial harm, according to Ziarul de Ias
DJI, which dominates the commercial drone market in the U.S., is asking a district court judge in Washington to remove it from the Pentagon’s list, arguing that it is neither “owned nor controlled by the Chinese military.”
Placement on this list serves as a national security warning to U.S. companies and entities, signaling potential risks in working with firms connected to foreign military forces.
The company’s lawsuit states that due to this “illegal and erroneous” designation, it has lost significant business and has been labeled as a national security threat.
DJI adds that this designation has also led to cancellations of contracts with U.S. and international clients, in addition to being barred from contracts with several federal agencies. DJI alleges that the damage caused by this listing has been severe, with both financial and reputational impacts.
Request Dialogue on the Matter
The U.S. Department of Defense has not yet commented on the lawsuit. DJI claims it was forced to take legal action after the Pentagon failed to respond for more than 16 months regarding the company’s request for dialogue on the matter.
This blacklisting is part of broader efforts by Washington to limit the influence of Chinese companies suspected of supporting China’s military. The list includes other major Chinese corporations like AVIC, YMTC, and China Mobile.
Earlier this year, Hesai Group, another Chinese tech firm, sued over its inclusion on the same list, although it was briefly removed before being reinstated for national security reasons.
DJI is also facing challenges related to U.S. Customs and Border Protection blocking imports of some of its drones under the Uyghur Forced Labor Prevention Act, a claim DJI has denied.
Additionally, the U.S. House of Representatives recently voted to ban new DJI drones from operating in the country, with the bill awaiting Senate action.