Pentagon Can Call DJI a Chinese Military Company, Court Rules

DJI has lost its lawsuit against the U.S. Department of Defense, failing to remove its designation as a Chinese Military Company. US District Court Judge Paul Friedman ruled the Pentagon has broad discretion to make such designations, finding sufficient evidence that DJI qualifies as a 'military-civil fusion contributor' based on its recognition by China's National Development and Reform Commission as a National Enterprise Technology Center. The designation provides DJI substantial government benefits including cash subsidies, special financial support and tax benefits.

The judge rejected several of the DoD's other claims for insufficient evidence and noted the department confused two different Chinese industrial zones when attempting to prove DJI's factories were in state-sponsored areas. DJI faces a total import ban on new products this December and US customs has already stopped many consumer drone shipments. The company says it is evaluating legal options.

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