Drone Maker Appeals Pentagon’s Decision to Label It a ‘Chinese Military Company’

Further fueling a year-long legal feud, world-famous drone maker DJI is taking its ‘Chinese Military Company’ label back to the Pentagon in hopes of regaining access to the US market. Judges decided just last month to uphold the Department of Defense’s claims that the company is tied to the Chinese Communist Party despite dismissing much of the evidence.

The ruling, issued by US District Judge Paul Friedman, came in the form of a 49-page opinion that rejected most of the Defense Department’s accusations, including claims that DJI is owned by, controlled by, or directly affiliated with the Chinese Communist Party. He also dismissed arguments that the company operates out of any so-called “military-civil fusion” zone. Still, the court allowed DJI’s inclusion on the blacklist to stand due to two narrower factors: its status as a Chinese National Enterprise Technology Center (a government-recognized innovation award) and the fact that DJI drones have the potential to serve both civil and military applications.

DJI company insists the NETC designation is routine for large Chinese tech firms and has nothing to do with the military. As for dual-use, DJI notes that the same logic could apply to nearly any modern technology, from smartphones to mapping software.

The company’s legal fight began in 2024, when it accused the Pentagon of applying the label without evidence. DJI also argued selective enforcement, pointing out that several Western companies with Chinese partnerships have similar government recognitions but remain untouched. The court, however, gave the Pentagon wide discretion in determining which companies appear on the list… which proved decisive in dismissing DJI’s claims.

DJI maintains that its drones are for peaceful use, emphasizing safeguards such as geofencing and user restrictions that prevent operation in restricted zones. It has also been publicly critical of the use of its products in warfare, reiterating that it was the “first drone company to publicly denounce and actively discourage the combat use of its products, and it has never manufactured military equipment nor marketed drones for combat.”

While DJI drones remain legal to operate in the US, the Pentagon’s classification is quickly gaining traction. Federal agencies will be barred from buying DJI products starting in 2026, and some new models have been kept from the US market altogether.

FMI: www.dji.com