Drone maker DJI sues Pentagon over ‘Chinese military company’ classification

DJI, the world’s largest drone manufacturer, has filed a lawsuit against the U.S. Department of Defense, challenging its designation as a “Chinese military company.”

The lawsuit, filed in a U.S. District Court in Washington, claims that the classification is incorrect and has caused significant financial harm to the company. DJI is seeking removal from the Pentagon’s list, arguing that it is not controlled by the Chinese military.

DJI denies military connections

In its lawsuit, DJI argues that the Pentagon’s classification is based on a misunderstanding of the company’s business and that it operates as a civilian drone manufacturer.

“DJI is neither owned nor controlled by the Chinese military,” the company stated, adding that its drones are primarily used for commercial purposes, not military applications.

DJI claims the classification has resulted in “lost business deals, stigmatization as a national security threat, and bans from contracting with federal agencies.”

Financial impact and loss of contracts

According to DJI, the Pentagon’s decision has led to the termination of contracts with both U.S. and international customers. The company also reported that it had made multiple attempts to engage with the Defense Department over 16 months to resolve the issue, but the efforts were unsuccessful.

As a result, DJI said it had no choice but to seek legal relief in federal court.

Ongoing US scrutiny of Chinese firms

DJI’s lawsuit comes amid heightened scrutiny of Chinese companies by U.S. officials. The drone maker is one of several Chinese firms added to the Pentagon’s list under the National Defense Authorization Act, which flags companies allegedly linked to China’s military. Other companies on the list include aviation giant AVIC and telecom company China Mobile.

Earlier this year, U.S. lawmakers raised concerns about DJI’s potential for data transmission and surveillance risks, accusations the company strongly denies. In a separate issue, DJI has also faced delays in importing drones into the U.S. due to allegations of forced labor, which the company has refuted.

Legal precedents and growing pressure

DJI is not the first company to challenge the Pentagon’s designation. In May, Chinese lidar manufacturer Hesai Group filed a similar lawsuit and was subsequently removed from the military company list, though it was quickly relisted on national security grounds.

DJI continues to face increasing regulatory pressure in the U.S. Last month, the U.S. House of Representatives voted to block new DJI drones from operating in the U.S., with the bill now awaiting Senate approval. Additionally, the U.S. Commerce Department is considering imposing broader restrictions on Chinese-made drones.