A U.S. federal court has upheld the Department of Defense’s classification of DJI as a Chinese military-related company, rejecting the drone maker’s attempt to be removed from the list.
U.S. District Judge Paul Friedman ruled on Friday that the Department of Defense provided strong evidence linking DJI to China’s defence industrial base.
He highlighted that “Whether or not DJI’s policies prohibit military use is irrelevant. That does not change the fact that DJI’s technology has both substantial theoretical and actual military application,” referencing adapted DJI drones used in the Russia-Ukraine conflict.
DJI, the world’s top commercial drone producer, argued it is independent of the Chinese military and focuses on consumer and commercial drones. The company noted even the U.S. government acknowledges it does not make military drones.
Judge Friedman upheld the DoD’s main rationale but dismissed some other reasons for DJI’s listing. This follows prior actions by the Departments of Treasury and Commerce, which had placed DJI and other Chinese firms on various restriction lists before the DoD added DJI in 2022.
Listing has caused DJI financial and reputational damage, prompting its lawsuit last year claiming the designation was unjust. DJI told Reuters it is considering legal options, adding the ruling “was based on a single rationale that applies to many companies that have never been listed.”
Beyond this, DJI faces a potential U.S. sales ban from December 2025 unless a national security agency clears its drones as posing no unacceptable risk, reflecting growing concerns over Chinese technology and security.