DJI Sues U.S. Defense Department Over Military Company Designation, Citing Financial Harm

DJI, the world’s largest drone manufacturer, filed a lawsuit against the U.S. Defense Department on Friday, challenging its inclusion on a list of companies allegedly linked to China’s military. The company argues the designation is incorrect and has caused substantial financial losses.

The lawsuit, filed in a U.S. District Court in Washington, requests DJI’s removal from the Pentagon's list of “Chinese military companies.” DJI asserts that it is neither owned nor controlled by the Chinese military and that the designation has unfairly damaged its reputation.

According to the lawsuit, DJI has faced business losses, as U.S. customers and international clients have terminated existing contracts or refused to engage in new agreements. The company claims the Pentagon's decision has stigmatized it as a national security risk, resulting in multiple federal agencies banning contracts with DJI.

Despite contacting the Defense Department over 16 months, DJI has yet to receive a response regarding its designation, leaving the company no choice but to seek legal relief. This lawsuit comes amid ongoing tensions between the U.S. and China, with Washington increasingly scrutinizing Chinese firms that could pose national security threats.

In related news, DJI faces additional challenges from U.S. Customs and Border Protection, which recently blocked some DJI drone imports under the Uyghur Forced Labor Prevention Act. DJI denies using forced labor in its supply chain.

U.S. lawmakers continue to express concerns over the potential security risks of DJI drones, with proposed legislation aiming to restrict their use within the country.