A federal judge has dealt a major setback to DJI, the world’s largest drone manufacturer, by rejecting its attempt to be removed from a U.S. Department of Defense (DoD) blacklist of Chinese military-linked companies.
On Friday, U.S. District Judge Paul Friedman ruled that the Pentagon had presented “substantial evidence” supporting its position that DJI contributes “to the Chinese defense industrial base.” In his decision, Friedman cited examples of modified DJI drones being used in the ongoing conflict between Russia and Ukraine. He noted that, regardless of DJI’s stated policies against military applications, the reality remains that the company’s technology has clear “theoretical and actual military application.”
However, Judge Friedman also dismissed some of the other justifications the DoD provided for DJI’s inclusion on the list. Still, the ruling keeps the company tied to the Defense Department’s designation made in 2022, which followed earlier blacklists from agencies such as the Department of Commerce and the Treasury Department.
DJI, which launched the lawsuit last year, has argued that it is neither owned nor controlled by the Chinese military. The company emphasized that it primarily manufactures consumer and commercial drones, not weapons. In its complaint, DJI claimed that the blacklisting has caused “ongoing financial and reputational harm,” including significant business losses.
Following the ruling, DJI told Reuters that it was evaluating its legal options, adding that the decision hinged on a single argument that could apply broadly to other tech companies not currently listed.
Meanwhile, DJI faces more challenges in the United States. A potential sales ban looms this December unless national security officials certify that its drones do not present an “unacceptable risk” to U.S. security interests.
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