DJI has filed a lawsuit against the United States Department of Defense for its inclusion on the Pentagon's list that designates it as a “Chinese military company.” In his presentation, shared by The edgeThe company said it is challenging the designation because it is “neither owned nor controlled by the Chinese military.” It described itself as the “largest private seller of commercial and consumer drones,” used primarily by first responders, police and fire departments, businesses and hobbyists.
The company claimed that because the Pentagon officially proclaimed it a national security threat, it has suffered “ongoing financial and reputational damage.” He also said he had lost business with both U.S. and domestic clients, who terminated contracts and refused to sign new ones, and was prohibited from signing contracts with multiple federal government agencies.
DJI explained that it attempted to engage with the Department of Defense for more than 16 months and filed a “comprehensive delisting petition” on July 27, 2023 for the agency to remove its designation. However, the agency reportedly declined to meaningfully participate and explain its reasoning behind adding the company to the list. On January 31, 2024, the Department of Defense redesignated the company without notice, DJI wrote in its complaint. DJI alleged that the Department of Defense only shared the full reasons for its designation after it informed the agency that it would “seek judicial redress.”
The company claimed that the Defense Department's reasoning was inadequate to support its designation, that the agency was confusing people with common Chinese names, and that it was based on “alleged outdated facts and attenuated connections.” DJI is now asking the court to declare the Defense Department's actions unconstitutional, calling the Pentagon's designation and failure to remove it from the list of “Chinese military companies” a violation of the law and its due process rights. process.
DJI has long been in the crosshairs of several US government agencies. The Commerce Department added it to its entity list in 2020, preventing US companies from supplying it with unlicensed parts. A year later, it was added to the Treasury Department's list of “Chinese military-industrial complex companies” for its alleged involvement in the surveillance of Uyghur Muslims in China. And just a few days ago, DJI confirmed that its latest consumer drones are being held at the border by US customs, which cited the Uyghur Forced Labor Prevention Act. The drone maker denied having manufacturing facilities in Xinjiang, the region associated with Uyghur forced labor.
