The world’s top drone maker, DJI, is now facing bigger challenges in the United States after losing a lawsuit against the Department of Defense. This legal defeat stems from the Pentagon’s decision to label DJI as a “Chinese military company.” The judge’s ruling could change how Chinese technology firms and the global drone market operate, especially in today’s day and age where surveillance and security make up such a critical area of focus for all the countries.
Why exactly was DJI on Pentagon’s list?
In October 2024, DJI challenged the Pentagon’s classification, arguing that it was unfair both in terms of financial impact and public reputation. DJI insisted it is neither owned nor controlled by the Chinese military. Despite these claims, the US Department of Defense submitted evidence that DJI’s technology is sometimes used for military purposes. The judge agreed, stating that even if DJI’s corporate policies ban military use, that fact alone does not outweigh the broader reality: DJI’s drones and tech can be, and sometimes are, utilized in military contexts.
What was the lawsuit and what was the outcome?
The lawsuit was a direct response to strict US government actions. Since 2020, several branches of the American government have taken measures against DJI. The Department of Commerce placed DJI and other companies on its Entity List, preventing American firms from working with them. In 2021, the Treasury also added DJI to its “Chinese military-industrial complex companies” list. This decision was made amid concerns of DJI’s alleged connection to surveillance projects, particularly regarding China’s treatment of Uyghur Muslim populations.
While DJI consistently maintains its independence from the Chinese government, the latest court result means its reputation in the US has taken a hit. The judge stressed the issue is not company ownership, but potential product use in global military operations.
What is at stake for DJI?
This designation has wide consequences for DJI. US companies may not be able to get loans, contracts, or grants if they partner with DJI. It also puts DJI under stricter scrutiny, with additional restrictions on importing drones or related equipment.
The company has already felt knock-on effects. For instance, US customs officials recently delayed’s DJI products at the border, adding further complications for American distributors and hobbyists. There’s now a looming threat of an outright import ban, possibly as soon as the end of the year, unless ofcourse, DJI can prove its products are not a security risk.
With all this now underway, what happens is tha American consumers or companies who are currently using DJI products might need to seek local or alternative suppliers, which could raise costs or affect how quickly they can adopt new drone tech. Meanwhile, European and Asian markets may need to review how their regulations line up with the US approach.
At the same time, Hobbyists, creators, and businesses using DJI drones in the US could see availability shrink and prices rise. If a ban takes effect, retailers may clear existing stock, but getting replacements or repairs will be more difficult.
Can DJI do anything about it?
On paper, DJI still has a chance to demonstrate that it does not pose a national security threat. The $895 billion US Defense Bill gave the company a one-year window to prove itself, but with the judge’s ruling and years of growing scrutiny, the road ahead looks difficult. DJI’s legal, business, and engineering teams now have to work overtime if they want to regain ground in the American market.
