DJI loses lawsuit over classification as Chinese military company

DJI, the leading drone manufacturer, has lost a lawsuit against the U.S. Department of Defense (DoD) over its classification as a "Chinese military company." A federal judge dismissed DJI's attempts to be removed from the DoD's list, which imposes restrictions on U.S. investment in the company. The judge ruled that the DoD's decision to include DJI on the list was not "arbitrary and capricious," as the company had argued. The DoD had cited DJI's alleged ties to the Chinese government and military as the basis for the classification. The ruling is a setback for DJI, which had argued that the designation was unfounded and damaged its business. The company now faces continued restrictions on its ability to operate in the U.S. market, as the designation limits the ability of U.S. investors and government agencies to do business with DJI. The decision underscores the ongoing tensions between the U.S. and China over technology and national security issues, with the U.S. government increasingly scrutinizing Chinese companies with perceived ties to the Chinese military or government.