DJI Challenges US Defense Over Alleged Military Designation

DJI Challenges US Defense Over Alleged Military Designation

DJI vs. the Department of Defense: A Drone Company’s Lip‑Sync to Wrongful Accusations

What Went Down?

On Friday, DJI, the world’s leading drone maker, announced a lawsuit against the U.S. Department of Defense (DoD). The company claims its unjust placement on the DoD’s “Chinese military companies” list has slapped its reputation and cash flow with a heavy-handed punch.

Why DJI Doesn’t Want to Play  “Military”

  • DJI’s clear mission: “We build consumer and commercial drones, not military gear.”
  • Front‑line founder Frank Wang and several early investors control 99% of voting rights and about 87% of shares.

One‑and‑Half‑Year (16‑Month) Negotiations Gone Cold

DJI had been reaching out to the DoD for more than a year  – and after hitting a wall, the company opted for federal court as its last hope.

The DoD List: 2022

  • Mid‑2020: The Department of Commerce slapped DJI onto its “Entity List”, effectively blocking U.S. firms from doing business with the company.
  • 2021: The Treasury added DJI to its investment blocklist over alleged ties to surveillance of Uyghur Muslims.

DJI’s Claims in the Court Filing

DJI alleges that “the DoD report is awash with a scattershot set of claims that fall far short of proving we are a Chinese military company.” It boils down to four headline grievances:

  1. Wrong legal standard applied: The DoD’s framework doesn’t match what’s required to label a business as military‑aligned.
  2. Confusing Chinese names: The report mistakenly lumps unrelated individuals with common names together.
  3. Stale, shaky facts: Information cited is old or loosely connected and does not convincingly link DJI to militaristic activities.
  4. Financial & reputational damage: The listing has cost DJI lost contracts and the company’s employees face harassment and stigma.

DJI’s Boomerang: “We’re Not Military”

DJI’s spokesperson emphasized, “We’re not owned or controlled by the Chinese military – that’s a fact the DoD itself admits.” The company claims its programs are purely for hobbyists, businesses, and general surveillance, not military warfare.

Looking Forward

DJI’s legal team plans to push for a hearing that could overturn or at least adjust the list. While the outcome remains uncertain, the company’s bold step signals that even tech giants might hit the legal roadblock when named on a government list.

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When TechCrunch reached out, a Defense official leaned in and said, “The Department of Defense doesn’t disclose or comment on any pending litigation matters.” They kept it brisk—no legal jargon, just a straight‑up policy reminder, keeping the conversation focused on the event’s headline attractions.