DJI has initiated legal action against the U.S. Department of Defense, contesting its inclusion on a Pentagon list that identifies it as a "Chinese military company." In the legal filing, as reported by The Verge, DJI argues against the designation, stating that it is "neither owned nor controlled by the Chinese military" and describing itself as the "largest privately owned seller of consumer and commercial drones," primarily utilized by first responders, fire and police departments, businesses, and hobbyists.
The company asserts that the Pentagon’s classification has resulted in "ongoing financial and reputational harm" due to its designation as a national security threat. DJI claims to have lost business from both U.S. and international customers, who have terminated contracts and refrained from entering new agreements. Additionally, the company has been prohibited from engaging in contracts with several federal agencies.
According to DJI, efforts were made to communicate with the Department of Defense over a period of more than 16 months. The company submitted a "comprehensive delisting petition" on July 27, 2023, seeking to have the designation removed. However, DJI alleges that the Department of Defense did not engage meaningfully nor explain the rationale behind its inclusion on the list. On January 31, 2024, the Department of Defense reportedly redesigned the company without prior notice, according to DJI’s complaint. It was only after DJI indicated its intention to "seek judicial relief" that the Department of Defense disclosed its full reasoning for the designation, DJI claims.
DJI contends that the Department of Defense’s reasoning is insufficient to justify the designation, asserting that the agency confused individuals with common Chinese names and relied on outdated allegations and weak connections. DJI is requesting the court to declare the Department of Defense’s actions unconstitutional, arguing that the Pentagon’s designation and the failure to remove it from the "Chinese military company" list violate legal and due-process rights.
For some time, DJI has faced scrutiny from various U.S. government agencies. The Department of Commerce added the company to its entity list in 2020, restricting U.S. companies from supplying parts without a license. In the following year, DJI was included on the Treasury Department’s "Chinese military-industrial complex companies" list due to alleged involvement in the surveillance of Uyghur Muslims in China. Recently, DJI confirmed that its latest consumer drones are being held by U.S. customs at the border, citing the Uyghur Forced Labor Prevention Act. The company denies having manufacturing facilities in Xinjiang, a region associated with forced Uyghur labor.
