DJI Appeals US Court Ruling on Pentagon's Military Companies List
Chinese drone manufacturer DJI Technology has filed an appeal with a US federal appeals court challenging a district court ruling that upheld the Pentagon's designation of the company as a Chinese military firm.
The appeal, submitted on October 14, follows a September ruling by the US District Court for the District of Columbia that largely rejected the Department of Defense's core allegations against DJI but maintained the company's inclusion on the Chinese Military Companies (CMC) list based on limited grounds.
DJI was first added to the Pentagon's CMC list in 2022 without explanation from US authorities. The Shenzhen-based company attempted to communicate with the Defense Department to understand the reasons for its inclusion and provide evidence of its civilian operations, but received no substantial response.
After the Pentagon updated the CMC list in January 2024 and kept DJI on it, the drone maker filed a lawsuit in October 2024 against the Defense Department, Defense Secretary Lloyd Austin, and Assistant Defense Secretary Laura Taylor-Kale.
The district court found that most of the Pentagon's core allegations lacked sufficient evidence but ruled against DJI based solely on the company's qualification as a "National Enterprise Technology Center" by China's National Development and Reform Commission. The court determined that technologies with dual-use potential meet the criteria for CMC listing regardless of a company's intentions or actions.
DJI told Global Times that it disagrees with and does not accept the court's decision. The company maintains it has consistently opposed military use of its products and has implemented comprehensive measures to prevent misuse of its technology for military purposes.
The CMC designation restricts US investment in listed companies and has broader implications for business operations in the American market. DJI's consumer and commercial drones hold significant market share globally, making the Pentagon's designation a key concern for the company's international business.