Is DJI a Chinese Military Agent? Drone Maker Takes the US to Court

By Yogesh Brar • Updated On 21 Oct 2024

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The world’s largest and most popular drone company, DJI, is suing the US Department of Defense after being labeled a Chinese government agent. DJI claims this designation has caused significant financial losses.

DJI alleges that its inclusion on a 2022 list of companies with potential links to hostile governments has led to lost business deals, stigmatization as a national security threat, and a ban on contracting with multiple federal agencies. The US Department of Defense routinely publishes such lists.

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Furthermore, DJI asserts that the DoD only provided an explanation for its inclusion on the list after the company filed a lawsuit in US courts. While DJI denies any wrongdoing, it has been unable to convince authorities. The company acknowledges that two Chinese state-owned investment funds hold minority stakes in the company, but emphasizes that these investments amount to less than 1%.

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This isn’t DJI’s first conflict with the US government. Since 2017, the company has faced scrutiny from various US government departments. The situation could worsen for DJI, as the US Congress is considering a blanket ban on the sale of DJI drones in the US market. If enacted, this legislation would severely impact DJI, as the US is a key market for the Chinese drone maker.

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Yogesh Brar

Exploring the depths of the Data world by day and journaling about tech by night. Often quoted by international publications like The Verge, GSMArena, India Today, and NDTV Gadgets360 for the latest stories on consumer tech. Living and breathing on the Internet.

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