DJI loses lawsuit over Pentagon's 'Chinese military company' list

DJI, a drone manufacturer, lost a lawsuit against the U.S. Department of Defense (DoD) over its designation as a "Chinese military company." The U.S. District Judge ruled that the DoD presented sufficient evidence that DJI's technology has substantial military applications, despite the company's policies prohibiting such use. DJI challenged the designation in October 2024, claiming it suffered financial and reputational harm. However, the judge found the designation valid, as it can prevent companies from accessing certain government programs. DJI has a contentious history with the U.S. government, having been added to the Commerce Department's Entity List and the Treasury Department's "Chinese military-industrial complex companies" list. The company now faces a potential import ban in the U.S. by the end of this year, with a clause in the $895 billion U.S. Defense Bill giving it a year to prove its products do not pose a national security risk.