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Drone giant DJI just faced a major legal blow. DJI loses lawsuit over classification as Chinese military company after a U.S. judge upheld the Department of Defense’s (DoD) decision to keep it on a list of firms linked to China’s defense sector.

Image Credits:Darrell Etherington

Why The Judge Ruled Against DJI

U.S. District Judge Paul Friedman ruled that the DoD had provided “substantial evidence” showing DJI contributes to China’s defense industrial base. He pointed to examples like modified DJI drones being used in the war between Russia and Ukraine.

Judge Friedman emphasized that whether DJI prohibits military use in its policies is irrelevant. What mattered was that the technology itself has clear military applications — both in theory and in practice.

Partial Rejection Of DoD’s Arguments

Interestingly, the judge did reject some of the DoD’s other rationales for listing DJI. Still, the ruling was enough to keep the company on the controversial list.

This isn’t DJI’s first challenge from U.S. authorities. Before being added to the DoD’s list in 2022, DJI had already been flagged by the Department of Commerce and the Treasury Department over national security concerns.

DJI’s Defense: “We Build Consumer And Commercial Drones”

DJI has long argued it is not owned or controlled by the Chinese military. In its lawsuit, the company stated that the DoD itself acknowledges DJI produces consumer and commercial drones, not military drones.

The company also claimed that the classification has caused “ongoing financial and reputational harm,” including lost business opportunities and strained international partnerships.

What This Means For DJI And The Industry

The ruling highlights the growing scrutiny of Chinese tech firms in the U.S., particularly those in sensitive sectors like drones. For DJI, the continued classification could make it harder to maintain global trust, especially as Western governments push for alternatives.

While the company remains the world’s largest drone manufacturer, the lawsuit’s outcome shows how geopolitical tensions can directly impact business operations and brand reputation.