DJI, a leading drone manufacturer, has taken legal action against the US Department of Defense, disputing its categorization as a “Chinese naval firm.”
After trying to engage with the US Department of Defense (DoD) for over 16 months, DJI was left with no choice but to seek relief through a federal lawsuit.
The DJI spokesperson emphasized, “To set the record straight, the company is not controlled or operated by the Chinese military, nor do we produce naval drones; our focus is solely on creating consumer and commercial drones for legitimate purposes.”
The Chinese language firm was listed on the DoD’s record in 2022, mirroring similar designations by other authorities agencies; this followed comparable actions taken against DJI in 2020, when it was added to a list that primarily blocked US firms from doing business with it, due to alleged involvement in surveillance of Uyghur Muslims. It had no connection whatsoever to the remedy of Uyghurs in Xinjiang.
DJI asserts in its lawsuit that as a direct result of the itemization, it has endured significant financial and reputational damage, including lost business opportunities, which has led to the stigmatization and harassment of its employees.
The Department of Defense asserts that the DoD report attempting to justify the “itemizing” accommodates a disparate collection of claims, potentially lacking sufficient evidence to support DJI’s classification.
The lawsuit contends that among numerous shortcomings, the report misapplies legal standards, confuses individuals with repetitive Chinese names, and relies on outdated information and tenuous connections that fail to establish DJI as a Chinese military company. It also notes that founder and CEO Frank Wang and three early-stage investors collectively control 99% of the company’s voting rights and approximately 87.4% of its shares.
The Division of Protection declined to comment on our inquiry.
