Dronemaker DJI sues Pentagon over Chinese military listing

DJI sues Pentagon over Chinese military company designation, facing pressure in the U.S., lost business deals and contracts.

China-based DJI sued the U.S. Defense Department on Friday (October 19, 2024) for adding the drone maker to a list of companies allegedly working with Beijing's military, saying the designation is wrong and has caused the company significant financial harm.

DJI, the world's largest drone manufacturer that sells more than half of all U.S. commercial drones, asked a U.S. District Judge in Washington to order its removal from the Pentagon list designating it as a "Chinese military company," saying it "is neither owned nor controlled by the Chinese military."

Being placed on the list represents a warning to U.S. entities and companies about the national security risks of conducting business with them.

DJI's lawsuit says because of the Defense Department's "unlawful and misguided decision" it has "lost business deals, been stigmatized as a national security threat, and been banned from contracting with multiple federal government agencies."

The company added "U.S. and international customers have terminated existing contracts with DJI and refuse to enter into new ones."

The Defense Department did not immediately respond to a request for comment.

DJI said on Friday (October 18, 2024) it filed the lawsuit after the Defense Department did not engage with the company over the designation for more than 16 months, saying it "had no alternative other than to seek relief in federal court."