DJI, the world’s leading drone manufacturer, is embroiled in a legal battle with the US Department of Defense (DoD) to clear its name from a contentious list branding it a "Chinese Military Company." The lawsuit, filed on Friday, challenges this designation by asserting that DJI has no ties or affiliations with Chinese military entities. The company argues that this labeling has unjustly damaged its reputation, leading to significant business losses, stigmatization as a national security threat, and a ban from engaging with various federal agencies. DJI states that its employees face ongoing harassment due to the military association and that these negative perceptions have intensified due...
...to the DoD’s actions. DJI's legal filing contends it has received no substantive explanation from the DoD regarding this classification until recent threats of litigation prompted a response in September. DJI claims that the rationale provided by the DoD is riddled with inaccuracies and misinterpretations. Despite reaching out for comment, the DoD has yet to issue a public response to DJI's allegations. The lawsuit is a critical step for DJI as the company fights to disentangle itself from accusations and assumptions linked to national security concerns.
Tensions between DJI and various US government bodies have escalated over concerns about the company's alleged connections to the Chinese government. Historical actions include the US Army's directive to cease the use of DJI drones and the US Interior Department’s 2019 decision to ground its DJI drone fleet over espionage fears. In 2020, the US Department of Commerce imposed stringent export restrictions, citing DJI's technology as facilitating human rights violations, particularly against the Uyghur population, by providing surveillance drones to the Chinese government.
Additional scrutiny followed in 2021 when DJI was placed on a list of Non-SDN Chinese Military Industrial Complex Companies. Some US agencies have been limited in their ability to purchase DJI drones since these developments. Recently, DJI found itself under the lens of the Uyghur Forced Labor Prevention Act, which allegedly impacted the way the company conducts its operations in the US. DJI firmly denies these allegations, emphasizing that it does not operate under the control of the Chinese state and asserting that its drones serve benign and beneficial purposes.
In its defense, DJI highlights that its products are technologically versatile, capable of aiding different sectors, including emergency services in the US. Multiple audits, carried out by independent firms and US government organizations, including the DoD itself, have reportedly found no significant security threats relating to DJI’s drones. Although DJI acknowledges minority investments from Chinese state-owned funds, it asserts these investments are minimal and do not influence company decisions. Despite the ongoing tensions, a legislative decision on a potential ban of DJI drones remains undecided, with the Senate and the House of Representatives yet to reach a consensus. Until then, DJI drones remain available for purchase and use in the US, with no immediate changes to ownership or operation rights expected.
