- DJI was added to the Pentagon's Section 1260H list in 2022, which includes companies allegedly linked to China's military.
- In October 2024, DJI filed a lawsuit arguing that the Pentagon's designation was 'unlawful and misleading.'
- A district court dismissed DJI's claims in 2025, leading to an appeal.
- On the 14th, the US Court of Appeals for the District of Columbia Circuit ordered the lower court to reconsider DJI's designation, citing procedural errors.
- The appeals court found that the district court erred by relying solely on unclassified evidence to conclude that DJI contributed to China's defense industrial base.
- The ruling grants access to classified records for review, which may impact the outcome of the case.
- DJI has consistently denied links to China's military and claims that its placement on the Pentagon's list has cost it business opportunities.
- The Department of Defense has not commented on the ongoing litigation regarding DJI's designation.
- Once a company is placed on the Department of Defense blacklist, it is prohibited from contracting with certain companies that hold Pentagon contracts.
- Broader prohibitions barring procurement from blacklisted companies are expected to take effect in 2027, expanding the impact on affected firms.
A US federal appeals court has mandated a lower court to reevaluate the Pentagon's decision to include DJI on its blacklist of companies purportedly associated with China's military. The US Court of Appeals for the District of Columbia Circuit identified significant procedural errors in the district court's earlier ruling, which relied exclusively on unclassified evidence to assert that DJI contributes to China's defense industrial base.4
The court's ruling represents a partial victory for DJI, the world's largest drone manufacturer, which has consistently denied any military affiliations. The company argued that its inclusion on the Pentagon's list has resulted in lost business opportunities and has unfairly branded it as a national security threat. A DJI spokesperson described the ruling as "an important step toward correcting an unjust designation," emphasizing the company's stance that it is not a military enterprise.
DJI was added to the blacklist in 2022, and it filed a lawsuit in 2024, claiming the Department of Defense's designation was "unlawful and misleading." The appeals court's decision allows the lower court to access classified records for review, which could potentially alter the outcome of the case. The court directed that any conclusions regarding DJI's support for China's defense industry must not rely solely on unclassified records and must include a reasonable public explanation.368
The implications of this ruling extend beyond DJI, as broader prohibitions against procurement from blacklisted companies are set to take effect in 2027, potentially impacting numerous firms.10
“The appeals court granted the lower court access to classified records, potentially compelling the Pentagon to provide more specific substantiation. DJI, which has consistently denied military ties, said the designation cost it business and stigmatized it as a national security threat.”
