DJI failed to appeal US inclusion in China's military company list

A US federal court has dismissed drone manufacturer DJI's lawsuit against the US Department of Defense, which added the company to a list of Chinese military enterprises. The judge noted that the Department provided "substantial evidence" of DJI's involvement in the Chinese defense industry, writes TechCrunch.

The court ruling stated that the use of modified DJI drones in Russia's war against Ukraine confirms their military applicability, regardless of the company's official policy prohibiting such a scenario. At the same time, the court rejected some of the Defense Ministry's arguments, in particular the claim that the Chinese authorities directly control the manufacturer.

DJI was added to the Chinese military enterprise list in 2022, after previously being restricted by the U.S. Department of Commerce and the U.S. Treasury Department. In the lawsuit, the company insisted that it is not owned or controlled by the Chinese military and that its products are intended for the consumer and commercial markets. DJI claimed financial and reputational losses due to the inclusion on the list.

The company expressed disappointment with the decision and said it was considering further legal action. Meanwhile, a security risk review is underway in the US, and DJI could face a complete sales ban as early as December if national security agencies deem its drones a threat to national security.