(Bloomberg) — SZ DJI Technology Co. said it has sued the US Department of Defense for adding the Shenzhen-based drone maker to a list that designates it as a Chinese military company.
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DJI had unsuccessfully attempted to engage with the defense department for more than 16 months on the issue, a spokesperson for the world’s largest maker of consumer drones said Friday.
“DJI determined it had no alternative other than to seek relief in federal court,” according to the spokesperson. “DJI is not owned or controlled by the Chinese military, and the Department of Defense itself acknowledges that DJI makes consumer and commercial drones, not military drones.”
The defense department maintains an updated list of Chinese military companies as part of the National Defense Authorization Act. The effort aims to counter Beijing’s goal of acquiring advanced technologies developed by Chinese companies that “appear to be civilian entities,” according to the legislation.
The act directs the defense department to identify such companies operating directly or indirectly in the US. DJI was first added to the list in 2022 and remains on it as of an update in January. American companies are barred from doing business with Chinese firms on the list.
Chip gear maker Advanced Micro-Fabrication Equipment Inc. is among other Chinese companies that have sued the Pentagon for linking them to China’s military.
–With assistance from Jessica Sui.
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