The world’s largest commercial drone manufacturer, DJI, is challenging the U.S. Department of Defense’s decision to include it on a list of companies linked to China’s military. The company, Shenzhen DJI Innovation Technology Co., commonly known as DJI, filed a federal lawsuit on October 18 in the U.S. District Court for the District of Columbia. DJI asserts that the Pentagon’s classification is incorrect, emphasizing that it is neither owned nor controlled by the Chinese military and focuses on consumer and commercial drones rather than military products.
DJI holds a dominant position in the global drone market, commanding an estimated 90% of the consumer sector and over 75% of the U.S. commercial market. Many U.S. police departments and companies rely on its drones for various operations. After 16 months of trying to engage with the Pentagon, DJI opted for legal action, expressing frustration that their concerns were only acknowledged after the lawsuit was filed.
Pentagon spokesperson Maj. Gen. Patrick Ryder acknowledged the lawsuit but refrained from commenting on the matter. Critics, however, argue that Chinese companies like DJI are bound by Chinese security laws, which require cooperation with the Chinese Communist Party, thus posing potential national security risks.
The Biden administration placed DJI on its restricted list in January, citing ties to the Chinese government, while the House of Representatives voted to block the operation of new DJI drones in the U.S. DJI maintains that the Pentagon’s November 2023 internal report, which led to its designation, is flawed, filled with inaccuracies, and misidentifies individuals with common Chinese names.
Despite DJI’s dominance, its future in the U.S. market faces challenges. In addition to the lawsuit, the company’s imports have been affected by U.S. Customs and Border Protection’s concerns over forced labor in China. DJI’s lawsuit argues that the Pentagon’s actions have stigmatized the company, led to the cancellation of contracts, and impacted its U.S.-based workforce of over 150 employees.
While DJI insists its products are not designed for military use, its drones have been utilized by international customers like Ukraine’s defense ministry, which purchased thousands of DJI Mavic 3 drones for military purposes. The drone industry’s rapid growth has also led to security issues at U.S. military bases, with reports of drones regularly flying over sensitive areas.
Lawmakers, like Sen. Jerry Moran, have voiced concerns about unidentified drones over military bases, calling for new legislation to give the Defense Department more authority to address these threats.
