DJI Loses Lawsuit Against US Government
In a significant legal setback, DJI has lost its lawsuit against the U.S. government, contending the company should not be labeled as a “Chinese Military Company.” The lawsuit was dismissed by a U.S. District Court judge on September 26, 2025, following the Department of Defense’s (DoD) assertion that its designation of DJI falls within its broad discretion, reports 24brussels.
Judge Paul Friedman acknowledged that while there was insufficient evidence to directly link DJI to the Chinese Communist Party, the DoD possesses the authority to categorize companies as Chinese military affiliates. The ruling noted that sufficient evidence exists to label DJI a “military-civil fusion contributor,” allowing its classification as a Chinese Military Company.
The judge referenced evidence of DJI’s recognition and support from the Chinese government and the entity Chengtong, which reportedly holds an unspecified ownership stake in the company. Despite DJI’s arguments against its classification, the court deemed that being recognized as a “National Enterprise Technology Center??? by China’s National Development and Reform Commission warranted the DoD’s designation.
DJI argued that companies such as Volkswagen and Nokia’s Chinese arms did not face similar scrutiny, but Judge Friedman emphasized the DoD’s discretion in determining classifications. This ruling is the latest hurdle for DJI in the U.S., where it confronts an impending import ban on new products scheduled for December 2025. Customs officials have already started blocking consumer drone shipments, leading to diminished product availability in the U.S. market.
Despite these setbacks, DJI may consider an appeal against the ruling. The company has been approached for comment regarding its potential plans. As the situation develops, the implications of this ruling could have lasting effects on DJI’s operations and presence within the United States.