A federal judge has upheld the Department of Defense’s decision to classify DJI, the world’s leading drone manufacturer, as a Chinese military company despite the firm’s objections.

U.S. District Judge Paul Friedman ruled on Friday that the Pentagon presented “substantial evidence” showing DJI’s technology contributes to China’s defense sector. He highlighted the use of modified DJI drones in the ongoing conflict between Russia and Ukraine, stressing that “whether or not DJI’s policies prohibit military use is irrelevant,” since the company’s products have “both substantial theoretical and actual military application.”
The ruling, however, rejected some of the Department of Defense’s additional arguments for the classification. DJI was added to the Pentagon’s list in 2022, after already being flagged by other U.S. agencies, including the Department of Commerce and the Treasury Department.

DJI filed its lawsuit last year, insisting it is “not owned or controlled by the Chinese military” and emphasizing that its products are consumer and commercial drones, not military equipment. The company further claimed it has suffered “financial and reputational harm” due to its inclusion on the list.

Following the ruling, DJI told Reuters it is weighing legal options and argued that Judge Friedman’s decision rested on “a single rationale that applies to many companies that have never been listed.”

The company’s challenges in the United States are mounting, as it also faces the prospect of a sales ban starting in December unless a national security review determines its drones do not pose a threat to U.S. national security.

Source: Techcrunch