US judge upholds Pentagon listing of DJI as Chinese military-linked firm

A US federal judge on Friday rejected a push by Shenzhen-based DJI, the world’s largest drone manufacturer, to be removed from the Pentagon’s blacklist of companies allegedly linked to China’s military.

In his opinion, US District Judge Paul Friedman in Washington said the Department of Defence had substantial evidence supporting its finding that DJI, which accounts for over half of all US commercial drones, contributes to the “Chinese defence industrial base”.

DJI had filed a suit last October seeking its removal from the Pentagon list, arguing that it “is neither owned nor controlled by the Chinese military”.

The drone maker was first added to the annually updated list of Chinese military companies, known under US law as the “Section 1260H list”, in 2022. While placement on the Pentagon list does not involve immediate bans, it sends a stark warning to US entities about the risks of conducting business with affected companies and could put pressure on other executive branch agencies and Congress to add further restrictions.

In its lawsuit, DJI said the Defence Department’s “unlawful and misguided” decision cost it business deals, stigmatised it as a national security threat and barred it from contracting with multiple federal agencies.

Responding to Friday’s court decision, a representative for the company said it remained committed to the US market and is currently evaluating further legal options.

South China Morning Post