China-based DJI filed a lawsuit against the US Defense Department on Friday ( October 18 ) alleging that adding the drone manufacturer to a list of businesses allegedly working with Beijing’s military was incorrect and had resulted in significant financial losses for the business.
A US district judge in Washington ordered DJI, the largest drone manufacturer in the world, to designate it as a” Chinese military company” and demand that it be removed from the Pentagon list, claiming it “is neither owned nor controlled by the Chinese military.”
Being on the roster serves as a caution to US businesses and individuals regarding the risks to national security that come with conducting business with them.
DJI’s complaint said that because of the US Defense Department’s “unlawful and mistaken choice”, it has “lost company offers, been stigmatised as a national security threat, and been banned from contracting with many federal government agencies”.
The company continued,” US and worldwide users have terminated existing deals with DJI and refuse to enter new people.”
A request for comment was not instantly addressed by the US Defense Department.
After the US Defense Department had been silent about the title for more than 16 weeks, DJI claimed on Friday that it had filed the lawsuit. It claimed that it had no other option but to file a federal court request for relief.
The updated listing is one of many actions Washington has taken in recent years to identify and limit Chinese companies that it claims may develop Beijing’s defense in the face of tension between the nation’s two largest economies.
Some big Chinese firms are on the listing, including aerospace company AVIC, memory device producer YMTC, China Mobile, and power company CNOOC.
Hesai Group, a laser company, filed a lawsuit in May challenging the Pentagon’s designation as a Chinese military for the business. Hesai was removed from the list on Wednesday, but the Pentagon announced it would re-list the Chinese-based company on national security grounds.
In the US, DJI is under increasing strain.
In response to the Uyghur Forced Labor Prevention Act, DJI before disclosed to Reuters that the US Customs and Border Protection is preventing exports of some DJI drones into the country.
DJI said little forced labour is involved at any level of its production.
The business refutes fears that US legislators have raised about the potential risks of data transfer, security, and national security from DJI drones.
The US House passed a bill last month that would have prevented fresh drones from operating in the country from DJI, with the invoice awaiting Senate approval.
The US Commerce Department added that it is seeking opinions on whether to impose limits on Chinese robots that would essentially outlaw them in the US.