Chinese drone maker takes legal action against Pentagon over military designation

DJI, the China-based drone manufacturer, filed a lawsuit against the U.S. Defence Department on October 18, challenging its classification as a company allegedly affiliated with the Chinese military.

The company claims this designation is incorrect and has led to significant financial damage, Caliber.Az reports citing foreign media sources.

As the world's largest drone producer, responsible for over half of all commercial drones sold in the U.S., DJI is seeking a ruling from a U.S. District Judge in Washington to remove its name from the Pentagon's list of "Chinese military companies," asserting that it "is neither owned nor controlled by the Chinese military."

Being listed carries serious implications, serving as a warning to U.S. entities about the potential national security risks associated with doing business with these firms.

In its lawsuit, DJI contends that the Defence Department's "unlawful and misguided decision" has resulted in lost business opportunities, reputational damage, and bans on contracts with several federal agencies. The company noted that both U.S. and international clients have cancelled existing agreements and are hesitant to establish new ones.

The Pentagon has not yet responded to requests for comment on the lawsuit.

DJI explained that the lawsuit was filed after more than 16 months of the Defence Department not engaging with the company regarding its designation, leaving DJI with no choice but to seek relief through the federal court system.

In May, lidar manufacturer Hesai Group also challenged its classification as a Chinese military entity. While the Pentagon recently removed Hesai from the list, it indicated that the company would be relisted on national security grounds.

DJI is currently facing increasing scrutiny in the U.S. Earlier this week, the company reported that U.S. Customs and Border Protection has halted imports of certain DJI drones due to the Uyghur Forced Labor Prevention Act, although DJI maintains that no forced labour is involved in its production processes.

U.S. lawmakers have consistently raised alarms about potential data transmission, surveillance, and national security threats posed by DJI drones — claims that the company disputes. Last month, the House of Representatives voted to prohibit the operation of new DJI drones in the U.S., with the bill pending action in the Senate. Additionally, the Commerce Department is seeking public input on imposing restrictions that could effectively ban Chinese drones in the U.S., similar to proposed restrictions on Chinese vehicles.

By Tamilla Hasanova