DJI loses lawsuit over classification as Chinese military company

A federal judge has ruled against DJI, the drone manufacturer, in its lawsuit challenging its designation as a Chinese military company by the U.S. Department of Defense (DoD). U.S. District Judge Paul Friedman found that the DoD presented “substantial evidence” indicating DJI contributes to China’s defense industrial base. He emphasized that DJI’s technology has significant military applications, citing its use in the Russia-Ukraine conflict, and noted that whether DJI’s policies prohibit military use is irrelevant to the classification. However, Judge Friedman dismissed some of the DoD’s other reasons for the listing. DJI had argued that it is not owned or controlled by the Chinese military and that it primarily produces consumer and commercial drones, not military ones. The company also claimed the designation caused financial and reputational harm. DJI is considering its legal options following the ruling and faces additional U.S. legal challenges, including a potential ban starting December unless a national security agency determines its drones do not pose an unacceptable security risk.