TLDRs;
- A US federal judge upheld the Pentagon’s decision to keep DJI on its Chinese military companies blacklist.
- The court cited evidence of DJI drones being used in the Russia-Ukraine war despite company bans on military use.
- DJI argued it is not owned or controlled by China’s military and claimed reputational and financial harm.
- Washington continues tightening rules on Chinese drones, with new restrictions from the Commerce Department expected soon.
A US federal judge has rejected drone manufacturer DJI’s attempt to be removed from a Pentagon list of Chinese military companies.
The ruling, handed down by Judge Paul Friedman Friday, solidifies the Department of Defense’s (DoD) position that DJI’s technology contributes to China’s defense sector.
The court concluded that the DoD had presented “substantial evidence” of DJI drones being modified for battlefield use, particularly in the ongoing Russia-Ukraine conflict. While DJI has repeatedly denied any intention for its products to be deployed in warfare, the judge found that company-issued bans on military usage did not prevent drones from being weaponized.
DJI Blacklisted Since 2022
DJI, the world’s largest commercial drone maker, was first added to the DoD blacklist in 2022 under the National Defense Authorization Act.
The list targets foreign firms believed to support or strengthen Beijing’s military and technological capabilities. Being on the list effectively blocks US investment and restricts business opportunities with American companies.
Other US agencies, including the Commerce Department and the Treasury Department, have also placed DJI under similar restrictions. These actions have caused both financial and reputational damage to the Chinese drone giant, which dominates the global drone market with over 50% share.
DJI’s Legal Challenge and Denial of Military Ties
DJI filed a lawsuit in federal court last year, arguing that it is neither owned nor controlled by the Chinese military. The company claimed that the Pentagon’s designation was unjustified and harmful to its global reputation.
For more than 16 months prior to the lawsuit, DJI had tried to engage with the Pentagon to challenge the listing but reported no meaningful response. Legal action, according to its spokesperson, was the company’s last resort. DJI maintains that its drones are developed for civilian and commercial purposes, from filmmaking and agriculture to infrastructure inspections.
Judge Friedman, however, dismissed DJI’s claims, stating that evidence of drones used in combat environments was enough to validate the Pentagon’s classification, even if DJI did not explicitly authorize such uses.
Growing US Scrutiny on Chinese Tech
The ruling comes at a time when Washington is intensifying scrutiny on Chinese technology companies. Earlier this month, the Commerce Department announced plans to restrict imports of Chinese drones and heavy vehicles over national security concerns. The measures could further impact DJI, which already faces a shrinking US market.
These upcoming rules may add tariffs or outright bans on Chinese drone imports, citing risks tied to communications technology embedded in the hardware. The policies follow similar restrictions placed on Chinese cars and trucks, with bans set to take effect in 2026.
Together, the blacklist ruling and proposed trade measures reflect Washington’s broader strategy to curb Chinese influence in critical technology sectors. For DJI, the decision underscores mounting challenges in its most important foreign market, as it navigates regulatory headwinds and reputational setbacks.
