DJI loses lawsuit over classification as Chinese military company

A federal judge has rejected drone manufacturer DJI’s attempt to remove itself from the U.S. Department of Defence (DoD) list of Chinese military companies.

U.S. District Judge Paul Friedman ruled on Friday that the DoD presented substantial evidence showing DJI’s contributions “to the Chinese defense industrial base.”

Citing the use of modified DJI drones in the ongoing Russia–Ukraine conflict, Judge Friedman wrote, “Whether or not DJI’s policies prohibit military use is irrelevant. That does not change the fact that DJI’s technology has both substantial theoretical and actual military application.”

However, Friedman also dismissed some of the DoD’s other arguments supporting DJI’s inclusion on the list.

DJI was previously blocked by multiple U.S. government bodies, including the Department of Commerce and the Treasury Department, before being added to the DoD list in 2022.

The company filed a lawsuit last year, arguing that it is “not owned or controlled by the Chinese military” and that “the DoD itself acknowledges that DJI makes consumer and commercial drones, not military drones.” DJI also claimed the designation had caused ongoing financial and reputational harm, including lost business opportunities.

A spokesperson for DJI told Reuters that the company is considering its legal options, adding that the judge’s ruling “was based on a single rationale that applies to many companies that have never been listed.”

TechCrunch has reached out to DJI for additional comment.

Meanwhile, DJI continues to face mounting regulatory pressure in the U.S., including a potential sales ban starting in December — unless a national security agency determines that its products do not “pose an unacceptable risk to the national security of the United States.”