China drone maker DJI loses lawsuit against US Pentagon, over military ties claim
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China-based DJI, the world’s largest drone maker, is on a Pentagon list of firms with links to Beijing's military. It sells more than half of all US commercial drones.
PHOTO: AFP
Follow topic:
- US judge rejected DJI's appeal to be removed from the Pentagon's list of companies allegedly working with the Chinese military.
- The Defence Department presented "substantial evidence" that DJI contributes to China's "defence industrial base," impacting US national security.
- DJI claims the designation has harmed its business, but the US Justice Department cites ongoing national security concerns regarding Chinese tech firms.
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WASHINGTON - A US judge on Sept 26 rejected a bid by China-based DJI, the world’s largest drone maker, to be removed from the US Defence Department’s list of companies allegedly working with Beijing’s military.
In his ruling, US District Judge Paul Friedman in Washington, DC, said the Defence Department had substantial evidence supporting its finding that DJI, which sells more than half of all US commercial drones, contributes to the “Chinese defence industrial base”.
DJI had urged the court to order its removal from the Pentagon list designating it as a Chinese military company, saying it “is neither owned nor controlled by the Chinese military.”
DJI and a lawyer for the company did not immediately respond to requests for comment.
The Defence Department declined to comment. US President Donald Trump has ordered the Defence Department to rename itself the Department of War, a change that will require action by Congress.
Placement on the Pentagon list can prevent a company from accessing certain US contracts, grants and other programmes, Judge Friedman said.
US companies face increased national security risks if they do business with an entity that the Defence Department has accused of working with the Chinese military.
In its lawsuit, DJI said the Defence Department’s addition of the company on the list was “unlawful and misguided”.
It said it has “lost business deals, been stigmatised as a national security threat, and been banned from contracting with multiple federal government agencies.”
The Justice Department in a court filing told Judge Friedman that the US “has long expressed significant concerns about the national security threat posed by the relationship between Chinese technology companies and the Chinese state.”
Judge Friedman in July ruled for the government in a dispute involving China-based lidar manufacturer Hesai Group, which also sued over the US decision to add it to a list of companies allegedly working with Beijing’s military.
Hesai has appealed Judge Friedman’s order. REUTERS
