DJI just lost a big court battle in Washington, and it could make the world’s best-known drone maker feel a lot less airborne.
US District Judge Paul Friedman ruled that DJI will stay on the Department of Defense’s list of “Chinese military companies,” a designation that’s as bad for business as it sounds.
The DoD first added DJI to the list back in 2022, arguing that the company’s tech contributes to China’s defense industrial base.
DJI pushed back hard, insisting it’s a civilian outfit making camera-toting quadcopters for hobbyists and filmmakers, not stealth bombers for Beijing.
But Judge Friedman wasn’t convinced, pointing to “substantial evidence” that DJI drones have “both substantial theoretical and actual military application.”
His opinion even cited the war in Ukraine, where modified DJI drones have been spotted buzzing battlefields despite the company’s policies banning military use.
Interestingly, Friedman didn’t buy all of the Pentagon’s arguments, tossing some of the DoD’s other justifications for the listing.
But that partial win is little comfort when your name remains on a blacklist that scares off investors and government contracts alike.
DJI claims it’s already suffered “ongoing financial and reputational harm,” including lost business, since the designation.
This isn’t the first time DJI has drawn scrutiny in Washington. The Departments of Commerce and Treasury had already flagged the company before the Pentagon piled on, and a looming US sales ban could kick in as soon as December unless national security officials decide DJI’s drones don’t pose “an unacceptable risk.”
DJI told Reuters it’s mulling its legal options, noting that Friedman’s decision hinged on a single rationale “that applies to many companies that have never been listed.”
DJI thinks it’s being unfairly singled out. But for now, America’s top-selling drone brand remains grounded by geopolitics, and no amount of smooth gimbal footage is likely to shake it loose.
Should DJI be held accountable for how its civilian drones are modified and used in military conflicts, or is this blacklist designation unfairly punishing a commercial company for actions beyond its control? Do you think the US government’s concerns about Chinese-made drones in American infrastructure are legitimate national security issues, or protectionist measures aimed at handicapping a dominant foreign competitor? Tell us below in the comments, or reach us via our Twitter or Facebook.
