Amid escalating tensions with China, DJI contests the U.S. Defense Department's military designation in court.

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DJI Sues U.S. Defense Department Over Military Designation

Chinese drone manufacturer DJI has filed a lawsuit against the U.S. Defense Department, challenging its inclusion on a list of companies allegedly collaborating with Beijing's military. DJI claims the designation is inaccurate and has caused substantial financial losses.

Hesai Group's Lawsuit

In May, lidar manufacturer Hesai Group also filed a lawsuit contesting the Pentagon's designation. The Defense Department has yet to comment on the matter.

National Security Concerns

The inclusion on the list serves as a warning to U.S. entities about potential national security risks associated with doing business with these companies. Amidst heightened tensions between the U.S. and China, the updated list is part of Washington's efforts to scrutinize and restrict Chinese companies that may bolster Beijing's military capabilities.

Hesai's Removal and Relisting

On Wednesday, the Pentagon removed Hesai from the list but promptly re-listed the company due to national security concerns.

DJI's Import Restrictions

Earlier this week, DJI reported that Customs and Border Protection has halted the import of certain DJI drones into the U.S., citing the Uyghur Forced Labor Prevention Act. DJI denies any involvement in forced labor practices.

U.S. Concerns and Proposed Restrictions

U.S. lawmakers have expressed concerns about DJI drones' potential risks to data transmission, surveillance, and national security, which the company refutes. The Commerce Department is currently seeking feedback on potential restrictions on Chinese drones, similar to proposed restrictions on Chinese vehicles.

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