DJI Sues DoD Over Chinese Military Company Label

DJI, the world's largest drone manufacturer based in Shenzhen, has sued the US Department of Defense (DoD) over its classification as a 'Chinese Military Company' (CMC), a designation that has caused financial and reputational harm. The lawsuit, filed in federal court, contends that the DoD's classification is legally flawed and unjustified, as DJI claims it operates solely in consumer and commercial markets without ties to the Chinese military. Despite attempts to engage the DoD for over 16 months, DJI received inadequate explanations for this designation. Former US Attorney General Loretta Lynch is leading DJI's legal team, which has sparked political criticism from some US lawmakers. The lawsuit highlights a broader pattern of US governmental scrutiny and restrictions on Chinese companies based on security concerns, with DJI seeking judicial relief to remove the CMC designation. DJI's case follows similar legal actions by other Chinese companies like Xiaomi, which successfully contested its military links designation in US courts.