DJI Loses bid to Remove ‘Chinese Military Company’ Designation
WASHINGTON D.C. – DJI, the world’s largest drone manufacturer, lost its lawsuit Friday against the U.S. Department of Defense (DoD) seeking to overturn its designation as a Chinese military company. U.S. District Judge Analisa Torres Friedman ruled the DoD had presented “ample evidence” linking DJI to China’s defense industrial base, effectively upholding the controversial listing.
The decision marks a important setback for DJI, which argued it was not owned or controlled by the Chinese military and primarily produced consumer and commercial drones. The company claimed the designation caused “ongoing financial and reputational harm, including lost business.” However, judge Friedman’s ruling hinged on the demonstrated military applications of DJI technology, regardless of the company’s stated policies.
The case centered on the DoD’s rationale for adding DJI to a list of companies operating in the U.S. that are linked to the Chinese military. While the judge rejected some of the DoD’s initial arguments, she affirmed the validity of evidence showing DJI drones – including modified versions - have been used by the Russian military in the conflict with Ukraine. “Whether or not DJI’s policies prohibit military use is irrelevant,” Judge Friedman wrote in her ruling. “That does not change the fact that DJI’s technology has both substantial theoretical and actual military application.”
DJI was previously placed on similar investment blocklists by the Department of Commerce and the Treasury Department in 2021.The company filed its lawsuit against the DoD in October 2024.
Following the ruling, DJI stated it is considering its legal options and believes the decision was “based on a single rationale that applies to many companies that have never been listed,” according to a statement provided to Reuters.
The legal battle comes as DJI also faces a potential ban on U.S.sales starting in december, contingent on a national security agency determining its drones do not pose an “unacceptable risk to the national security of the United States.”
