DJI Takes Legal Action Against Pentagon’s Military Classification
In a significant move, DJI has initiated a legal challenge against the United States Department of Defense (DoD) following its recent classification as a “Chinese military company.” According to details shared by The Verge, DJI asserts that it is not under the ownership or control of the Chinese military and emphasizes its position as the “largest privately owned provider of consumer and commercial drones,” which are primarily utilized by emergency responders, law enforcement agencies, businesses, and recreational users.
Claims of Financial and Reputational Damage
The company argues that this designation has led to substantial financial losses and damage to its reputation. DJI reports that it has experienced contract cancellations from both U.S. clients and international partners who have opted not to engage in new agreements. Furthermore, multiple federal agencies have barred DJI from entering into contracts with them.
Efforts for Delisting Ignored by DoD
DJI revealed that it attempted to communicate with the DoD for over 16 months regarding this issue. On July 27, 2023, they submitted a detailed petition requesting their removal from the list; however, they claim that the department did not respond constructively or provide adequate justification for their inclusion on this list. In an unexpected turn on January 31, 2024, DJI states that the DoD reclassified them without prior notice.
Lack of Justification for Designation
The lawsuit contends that the rationale provided by the DoD is insufficient to justify such a designation. DJI alleges confusion stemming from common Chinese names used within their organization and claims reliance on outdated information with tenuous connections at best. The company is now seeking judicial intervention to declare these actions unconstitutional while arguing that being labeled as part of China’s military apparatus violates both legal standards and their rights to due process.
A History of Scrutiny from U.S. Authorities
This isn’t DJI’s first encounter with scrutiny from U.S government entities; in fact, it has faced increasing pressure over recent years. In 2020, it was placed on the Department of Commerce’s entity list which restricted American companies from supplying components without special licenses. The following year saw its addition to another list maintained by Treasury due to alleged involvement in monitoring Uyghur Muslims within China’s borders.
Most recently reported incidents include customs holding up shipments of its latest consumer drones at U.S borders under regulations tied to concerns about forced labor practices associated with Uyghurs in Xinjiang—a claim which DJI vehemently denies stating they do not operate any manufacturing facilities in regions linked with such allegations.
