DJI sues US for putting them in the “Chinese military companies” list

It’s been two years since the US Government blacklisted DJI as a “Chinese military company.” And now, DJI decided to sue. The leading drone manufacturer has filed a lawsuit against the US Department of Defense (DOD), challenging its decision. The company is seeking to overturn the decision, arguing that it has no ties to the Chinese military and has been unfairly targeted.

DJI is based in Shenzhen, China, and controls approximately 90% of the consumer drone market. As we all know, its products are widely used for civilian purposes like aerial photography, filmmaking, and recreational activities. However, in 2022, the DOD added DJI to its list of companies that allegedly have significant ties to the Chinese military. This made it extremely difficult for DJI to conduct business in the US, as government agencies are prohibited from doing business with companies on the list.

DJI has repeatedly denied any affiliation with the Chinese military, stating that it is a purely civilian company. “DJI stands alone as the only drone company to clearly denounce and actively discourage military use of our products, including suspending all business operations in Russia and Ukraine to try to keep our drones out of the conflict there,” the company writes in a statement. “There is no reason why DJI has been added to the Defense Department’s list of ‘Chinese military companies.’”

“DJI does not fall under any categories set by the law to be included on the list. DJI is not a military company in China, the United States or anywhere else. DJI has never designed or manufactured military-grade equipment, and has never marketed or sold its products for military use in any country. Instead, we have always developed products to benefit society and save lives.

We stand ready to formally challenge our inclusion on the list.”

In its lawsuit, DJI claims that the DOD’s designation has caused it to lose business deals and government agency contracts. It even notes that its employees “now suffer frequent and pervasive stigmatization” and are “repeatedly harassed and insulted in public places.”

“These harms are neither random nor unexpected: they are the intended consequence of a CMC designation. Congress created the CMC List to “name and shame” the designated companies in order to dissuade the U.S. and international community from doing business with them.”

Earlier this year, the US House of Representatives passed a bill to ban the sale of DJI drones in the United States. However, even if this bill becomes law, it’s worth noting that the existing owners would still be allowed to fly their DJI drones. However, no US government agencies and companies that receive government funding would be allowed to buy or use DJI drones or any related services.

[via PC Mag]

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