DJI Sues Pentagon Over Claims Of Chinese Military Ties

DJI, the world’s largest drone company, is suing the U.S. Department of Defense to remove its name from a list of “Chinese Military Companies.” The lawsuit, filed on Friday, claims that the designation is unfair, as DJI maintains it has no ties to the Chinese military and solely produces consumer and commercial drones.

DJI argues that the Department of Defense’s decision has caused significant damage to its business. The company states it has lost contracts, been labeled a national security threat, and been barred from working with various U.S. government agencies.

The lawsuit also highlights that several international customers have canceled contracts with DJI and are unwilling to enter into new agreements.

DJI, represented by the U.S. law firm Paul Weiss, claims that the Pentagon has refused to provide any justification for the designation or meet with company representatives, as noted by Politico.

The lawsuit follows the Pentagon’s 2022 decision to add DJI to the list of “Military Companies Operating in the United States,” as reported by Politico.

This move came after the Department of Defense declared DJI’s products a potential national security threat in 2021, which led to a ban on the use of DJI drones by U.S. government agencies, added Politico.

The Defense Department maintains this list as part of the National Defense Authorization Act, a legislative effort aimed at countering Beijing’s attempts to acquire advanced technologies through companies that appear to be civilian entities, noted Bloomberg.

The act requires the Defense Department to identify companies operating in the U.S. that are connected, directly or indirectly, to the Chinese military, said Bloomberg.

DJI was first added to this list in 2022 and remains on it as of the most recent update in January 2024. U.S. companies are prohibited from conducting business with Chinese firms on this list, noted Bloomberg.

U.S. lawmakers have raised concerns over the security risks associated with DJI drones, including potential data transmission and surveillance vulnerabilities, a charge DJI has denied, as noted by Reuters.

The Pentagon has yet to respond to the lawsuit, Politico reported.

The case underscores ongoing tensions as both nations navigate the intersection of trade and security.