Technology
Danish Kapoor
Danish Kapoor

DJI files lawsuit against US Department of Defense: Objects to designation as “Chinese Military Company”

DJI filed a lawsuit against its designation as a “Chinese military company” by the US Department of Defense. The company argued in the lawsuit file shared with The Verge that this characterization was incorrect, stating that it was neither controlled nor owned by the Chinese military. Describing itself as “the world’s largest private drone vendor, most preferred by first responders, fire and police departments, businesses and hobby users,” DJI claimed that it suffered serious financial and reputational losses due to this decision by the Pentagon.

The company stated that it lost business from both its US and international customers, many contracts were canceled and new agreements were prevented, as the Pentagon described it as a national security threat. He was also barred from signing contracts with the U.S. federal government.

DJI announced that it attempted to communicate with the Department of Defense for approximately 16 months and filed a comprehensive “delisting petition” on July 27, 2023. However, he claimed that the ministry did not respond meaningfully to these applications and refused to explain the reasons for the company’s inclusion in the list. DJI’s complaint stated that on January 31, 2024, the Ministry of Defense relisted the company without any notification. Only after announcing that it planned to pursue litigation did DJI claim that the ministry had shared its full reasoning for the listing.

DJI argued that the ministry’s justifications were insufficient to support this classification and that the wrong people were confused due to name similarities. He also claimed the ministry relied on “outdated claims and weak connections.” The company argues that the Pentagon’s decision violates its constitutional rights and asks the court to declare this classification unlawful.

DJI has long been a target of the US government

DJI has been facing various sanctions by the US government for a long time. The US Department of Commerce added DJI to the “entity list” in 2020, banning US companies from supplying parts to DJI without obtaining a license. A year later, the Treasury Department added DJI to its list of “Chinese military-industrial complex companies” due to allegations about China’s surveillance of Uyghur Muslims. Although DJI denied these claims, US customs kept the company’s latest consumer drones at the border. Customs officials stated that they carried out this action based on the Uyghur Forced Labor Prevention Act. DJI, on the other hand, argued that it did not have production facilities in the Xinjiang region.

Danish Kapoor