DJI Loses Lawsuit: Classified as Chinese Military Company

DJI's Challenge to DoD Listing Dismissed

A ruling by a federal judge has denied DJI, the drone manufacturer, its attempt to be removed from a Department of Defense (DoD) list of Chinese military companies.

Court Findings and Evidence

U.S. District Judge Paul Friedman determined that the DoD presented “substantial evidence” demonstrating DJI’s contribution to China’s defense industrial base.

The judge highlighted the observed deployment of altered DJI drones during the Russia-Ukraine conflict. Friedman asserted that regardless of the company’s stated policies against military application, the technology’s potential and demonstrated use in military contexts are undeniable.

Partial Rejection of DoD Rationale

While upholding the listing, Judge Friedman did dismiss certain other justifications presented by the DoD.

Prior Government Actions

Prior to its inclusion on the DoD list in 2022, DJI had already been placed on comparable lists by other governmental bodies, such as the Department of Commerce and the Treasury Department.

DJI's Response and Claims

Upon filing the lawsuit last year, DJI maintained that it is neither owned nor controlled by the Chinese military.

The company also stated that the DoD itself recognizes DJI as a producer of consumer and commercial drones, rather than military-grade equipment.

DJI further claimed to have experienced significant financial and reputational damage, including lost business opportunities, as a direct consequence of being placed on the list.

Current Status and Future Outlook

TechCrunch has contacted DJI for a statement. The company informed Reuters that it is evaluating its legal avenues and believes the judge’s decision rests on a rationale applicable to numerous companies not currently listed.

DJI is also confronting additional legal challenges within the United States.

A potential sales ban could take effect in December, contingent upon a national security agency’s assessment of whether DJI drones present an “unacceptable risk to the national security of the United States.”