DJI, the world’s leading drone manufacturer, is fighting to distance itself from accusations of ties to the Chinese government.
On Friday, the company filed a lawsuit against the US Department of Defense (DoD), demanding removal from the list of “Chinese Military Companies.” DJI argues that it has no affiliation with the Chinese authorities and has faced significant reputational and financial harm due to this designation.
Since being added to the list in 2022, DJI claims it has lost business opportunities, been labeled a national security threat, and barred from working with several federal agencies. Additionally, the company says its employees have been harassed and publicly insulted because of the stigmatization. According to DJI, the DoD failed to provide a clear reason for the designation until DJI threatened legal action in September. When the explanation was finally given, DJI claims it was riddled with mistakes.
The US Department of Defense has yet to comment on the lawsuit. Meanwhile, DJI insists it is not controlled by the Chinese military and highlights independent audits by both consulting firms and US government agencies, including the DoD, that found no security risks tied to the company. Despite admitting that two Chinese state-owned funds held minority investments, DJI states that these investments were minimal, and one of them ended in June 2023.
DJI has faced scrutiny from multiple US government bodies over potential links to the Chinese government. The US Army stopped using DJI drones in 2017, and in 2019, the Interior Department grounded its fleet over espionage concerns. DJI was added to the Department of Commerce’s Entity List in 2020 due to allegations that it facilitated human rights abuses within China. Congress is currently considering an import ban on DJI drones, but for now, the restrictions primarily affect government purchases rather than consumer sales.
