DJI Drone Maker Fails to Shake "Chinese Military Company" Label After Federal Court Ruling

Federal Judge Rejects DJI's Bid to Remove Chinese Military Company Label A U.S. District Court judge has dealt a blow to drone maker DJI's efforts to be removed from the Department of Defense's list of Chinese military companies, ruling that the company's technology has substantial theoretical and actual military application. On Friday, U.S. District Judge Paul Friedman rejected DJI's lawsuit, citing evidence that the company contributes to China's defense industrial base. The DoD added DJI to its list in 2022, following similar designations by other government agencies, including the Department of Commerce and the Treasury Department. In his ruling, Judge Friedman wrote that whether or not DJI prohibits military use is "irrelevant," as the company's technology has been used in conflicts between Russia and Ukraine. "That does not change the fact that DJI's technology has both substantial theoretical and actual military application," he stated. DJI had argued that it was not owned or controlled by the Chinese military, and that the DoD acknowledges the company makes consumer and commercial drones, not military drones. The lawsuit also claimed that the listing had caused ongoing financial and reputational harm to the company. "We are disappointed with the court's decision," a DJI spokesperson said in a statement. "We will continue to work with government agencies to resolve this matter." The ruling has significant implications for DJI, which is one of the world's leading drone manufacturers. The company's technology has been used in various industries, including construction, agriculture, and filmmaking. "This decision highlights the complex relationship between technology and national security," said Dr. John Villasenor, a cybersecurity expert at the University of California, Los Angeles. "As technology continues to evolve, we can expect more companies like DJI to face similar challenges." The DoD has not commented on the ruling, but experts say it is likely that the agency will continue to monitor DJI's activities. In the meantime, DJI faces an uncertain future. The company's listing as a Chinese military company has already led to lost business and reputational damage. As the technology landscape continues to evolve, companies like DJI must navigate complex regulatory environments and ensure their products meet national security standards. The case is expected to be appealed, with further developments likely in the coming months. *Reporting by Techcrunch.*