Drone Giant DJI Sues U.S. Defense Department Over Military Label
DJI files a federal lawsuit challenging its designation as a Chinese military company, claiming the DoD relies on flawed reasoning and outdated facts. The drone manufacturer argues the wrongful listing causes severe financial and reputational damage.
Drone manufacturer DJI files a federal lawsuit against the U.S. Department of Defense to challenge its placement on a list of Chinese military companies. A company spokesperson states that DJI pursues legal action after trying to engage with the DoD for over sixteen months without success. DJI insists it operates independently and emphasizes that the DoD itself acknowledges the company produces consumer and commercial drones rather than military equipment.
The company faces mounting restrictions from U.S. agencies, having been added to the DoD list in 2022 following previous placements on the Commerce Department's Entity List and the Treasury Department's investment blocklist. DJI argues that this designation causes ongoing financial losses and reputational harm, noting that its employees face stigmatization and harassment. The lawsuit claims the government's justification relies on a scattershot set of inadequate claims.
In its legal challenge, DJI asserts that the DoD applies the wrong legal standard and confuses individuals who share common Chinese names. The company highlights that founder and CEO Frank Wang and three early investors hold 99 percent of voting rights and 87.4 percent of shares, reinforcing its civilian ownership structure. A Defense official declines to comment on the pending litigation.