DJI sues US Defense Department over 'Chinese military company' label
DJI, the world's top drone maker, has sued the US Department of Defense (DoD). The lawsuit comes after DJI was added to a list of "Chinese Military Companies," a label the company vehemently denies. Ever since it was placed on the list in 2022, DJI says it has suffered major business losses and damage to its reputation.
Business losses and reputational damage
DJI claims that due to the "Chinese Military Company" label, the company has "lost business deals, been stigmatized as a national security threat, and been banned from contracting with multiple federal government agencies." The company also says that its employees "now suffer frequent and pervasive stigmatization" and are "repeatedly harassed and insulted in public places" due to this label.
DoD's justification for designation challenged
The drone maker claims that the DoD didn't offer any explanation for its "Chinese Military Company" tag until DJI threatened legal action in September. The company also claims that when an explanation was finally given, it was riddled with inaccuracies. However, the US Department of Defense is yet to respond to these allegations.
History of scrutiny by US government agencies
DJI has been under the radar of multiple US government agencies over possible connections with the Chinese government. Back in 2017, the US Army directed units to stop using DJI drones. Two years later, the US Interior Department grounded its fleet of DJI drones over spying concerns. In 2020, the company was placed on the Department of Commerce's Entity List for allegedly facilitating human rights abuses in China, through high-tech surveillance and abusive genetic collection/analysis.
Claims of government control and human rights violations refuted
DJI has always denied being owned or controlled by the Chinese government. It also refutes any involvement in the treatment of Uyghurs in Xinjiang. The company insists its drones are sold for a range of purposes, many of which have helped entities in the US, including first responders. Even with these claims, some US government entities have been barred from buying new DJI drones after these actions.
DJI drones face potential import ban in the US
Currently, Congress is weighing a complete import ban on new DJI drones and other equipment in the US over potential national security risks. The proposal was passed by the House of Representatives as part of the National Defense Authorization Act but is not part of the Senate's version of the bill. So far, the US government has taken no action to stop stores from importing drones or consumers from buying them.
