Sep 29, 2025 12:45:00

A ruling has been made that the US Department of Defense can classify Chinese drone maker DJI as a 'Chinese military company'

DJI, the world's largest drone manufacturer, filed a lawsuit against the US Department of Defense in October 2024, alleging that it had been unfairly accused of being called a 'Chinese military company' without evidence since its name was added to the

list of Chinese military-related entities compiled by the US Department of Defense in 2022. While the lawsuit did not conclude that DJI is directly related to the Chinese military industry, it ruled that 'the Department of Defense has broad discretion over companies on the list of Chinese military-related entities.'

Pentagon can call DJI a Chinese Military Company, court rules | The Verge
https://www.theverge.com/news/786540/dji-loses-chinese-military-company-lawsuit-dod

DJI Loses Its Lawsuit Against the Pentagon, Remains Designated a Chinese Military Company in US | PetaPixel
https://petapixel.com/2025/09/26/dji-loses-its-lawsuit-against-the-pentagon-remains-designated-a-chinese-military-company-in-us/

Under Section 1260H of the National Defense Authorization Act , the U.S. Congress has compiled a list of companies deemed to be 'Chinese military companies' that operate directly or indirectly in the United States. The list, as of January 2025, can be viewed on the government's official website . Potential criteria for inclusion on the list include 'direct or indirect ownership or control by the military, party, or state organs' and 'determined to contribute to China's defense industry.' Being included on the list may result in restrictions on U.S. government contracts, public subsidies, and participation in other programs.

DJI, the world's largest drone manufacturer and headquartered in China, was added to the list compiled by the US Department of Defense in 2022. DJI claims that as a result of being included on the list, it has 'lost business deals, been branded by the US government as a national security threat, been barred from contracting with multiple federal agencies, and its employees have been subjected to frequent and widespread stigma and repeated harassment and humiliation in public,' and filed a lawsuit against the US Department of Defense on October 18, 2024, seeking removal from the list.

DJI, the world's largest drone manufacturer, sues the US Department of Defense for unfairly accusing it of being a 'Chinese military-affiliated company' - GIGAZINE

DJI has repeatedly asserted that it is not owned or controlled by the Chinese government, and that independent audits by consulting firms and U.S. government agencies, including the Department of Defense, have found no security threats to DJI. However, DJI is subject to monitoring and regulation by multiple U.S. agencies, including being blacklisted by the U.S. Treasury Department as a ' Chinese military-industrial complex company .'

As a result of the lawsuit, U.S. District Court Judge Paul Friedman ruled against DJI, finding that 'there is insufficient evidence that DJI is indirectly controlled by the Chinese Communist Party or the military,' but concluded that the U.S. Department of Defense's determination was appropriate because there was sufficient evidence that DJI has received support and approval from the Chinese government to be designated a 'military-civilian fusion enterprise' and that a state-owned enterprise holds a portion of DJI's stock.

The court also found that the Department of Defense has broad discretion in areas related to national security, and that it had the authority to designate DJI as a 'Chinese military company.' For example, DJI argued that 'other companies with similar characteristics are not treated the same,' but Judge Friedman stated that 'the Department of Defense has broad discretion in determining which companies belong to the Chinese military company list and which do not.'

The United States passed the 'Countermeasures Against Chinese Communist Party Drones Act' in 2024, preventing DJI from accessing the frequency bands used for drone communications and control. Furthermore, in December 2024, the Senate passed an amendment to the National Defense Authorization Act that would ban the import of virtually all DJI products unless DJI can convince the appropriate national security authorities that its drones do not pose an unacceptable risk to the national security of the United States. This law has a one-year expiration date, meaning that DJI may be unable to sell any products in the United States by December 2025.

DJI's drone restriction bill passed by the US House of Representatives, and if passed by the Senate, DJI's drones will suffer a major blow - GIGAZINE

DJI spokesperson Daisy Cong said in a statement to the media, 'DJI is pleased that the court ruled in favor of DJI and rejected most of the Department of Defense's justification for DJI's listing. However, we are disappointed that the court upheld the listing. DJI is currently considering its legal options in light of this ruling.' She added that the company is considering an appeal.