DJI has filed a lawsuit against the U.S. Department of Defense over its addition to the Pentagon’s list of “Chinese military companies.” In a filing shared with The Verge, the company said it objects to the designation because it is “not owned or controlled by the Chinese military.” The company describes itself as “the largest private seller of consumer and commercial drones,” which are primarily used by first responders, fire and police departments, businesses, and hobbyists.
The company claimed it suffered “ongoing financial and reputational harm” as the Pentagon officially declared it a national security threat. The company also said it lost business from both domestic and domestic customers by terminating contracts and refusing to enter into new ones, and was barred from entering into contracts with several federal agencies.
DJI said it has been attempting to engage with the Department of Defense for more than 16 months and on July 27, 2023, it submitted a “comprehensive delisting application” to the Department of Defense to remove the designation. However, the authorities allegedly refused to engage meaningfully and refused to explain why they added the company to the list. On January 31, 2024, the Department of Defense redesignated the company without notice, DJI said in its complaint. DJI argued that it only fully shared the basis for the designation with the Pentagon after it notified it that it would “seek judicial relief.”
The company said the Pentagon’s reasoning was insufficient to support its designation, and that the Pentagon had confused people with common Chinese names, resulting in “stale alleged facts and weakened connections.” He claimed to be dependent. DJI is now asking a court to declare the Pentagon’s actions unconstitutional, arguing that the Pentagon’s failure to designate and remove it from the list of “Chinese military enterprises” violates the law and due process rights. .
DJI has been the subject of scrutiny by various U.S. government agencies for years. The Commerce Department added the company to its Entity List in 2020, which prevents U.S. companies from supplying parts without a license. A year later, the company was added to the Treasury Department’s list of “Chinese military-industrial complexes” for its alleged involvement in surveillance of China’s Uyghur Muslims. And just a few days ago, DJI admitted that its latest consumer drones were being held at the border by U.S. Customs, citing the Uyghur Forced Labor Prevention Act. The drone maker denied having manufacturing facilities in Xinjiang, a region linked to forced labor among Uyghurs.
