DJI is challenging the Pentagon’s designation of a ‘Chinese military company’ in court

DJI has filed a lawsuit against the US Department of Defense for adding it to the Pentagon’s list of what it calls a “Chinese military company.” In its fulfillment, shared by The Vergethe company said it is challenging its designation because it is “not owned and controlled by the Chinese military.” It describes itself as “the largest private consumer and commercial retailer,” used primarily by first responders, fire and police departments, businesses and hobbyists.

The company says that because the Pentagon has officially declared it a national security threat, it has lost “sustained financial and reputational value.” It also said it had lost business from American and domestic customers, terminated contracts and refused to enter new ones, and was barred from signing contracts with many government agencies.

DJI explained that it had tried to contact the Department of Defense for more than 16 months and sent a “complete delisting request” on July 27, 2023 for the agency to remove its name. However, the agency is said to have refused to meaningfully engage and explain its reasons for adding the company to the list. On January 31, 2024, the DoD renamed the company without notice, DJI wrote in its complaint. DJI alleges that the DoD only shared its full reasons for the designation after it informed the agency that it would “seek legal assistance.”

The company said the DoD’s reasoning was insufficient to support its nomination, that the agency confused people with generic Chinese terms and that it relied on “alleged old facts and reduced communication.” DJI is now asking the court to declare the DoD’s actions unconstitutional, citing the Pentagon’s designation and failure to delist it as a “Chinese military company” as a violation of the law and its due process rights.

DJI has long been involved with various US government agencies. The Commerce Department added it to its business list in 2020, which prevented US companies from supplying parts without a license. A year later, it was placed on the Treasury Department’s list of “complex Chinese military industry companies” for alleged involvement in the recruitment of Uyghur Muslims in China. And a few days ago, DJI confirmed that its latest consumer drones have been detained at the border by US customs, citing the Uyghur Forced Labor Prevention Act. The drone maker has denied having production facilities in Xinjiang, a region associated with forced Uyghur labor.