DJI has sued the US Department of Defense for designating it as a Chinese military company.
DJI, which is based in Shenzhen, China, is estimated to control 90% of the consumer drone market. Its drones, such as the DJI Mavic 2 Pro, are commonly used for civilian use cases like aerial photography. They are popular in industries like film and TV and also with hobbyists.
The Defense Department produces a regularly updated list of companies thought to have significant ties to the Chinese military. This list aims to prevent the Chinese government from accessing advanced technology under the disguise of a civilian operation. It is illegal for American government agencies to do business with companies on this list.
In 2022, DJI was added to that list. At the time, DJI said it “is not a military company in China, the United States or anywhere else; has never designed or manufactured military-grade equipment; and has never marketed or sold its products for military use in any country.”
DJI added: “We stand ready to formally challenge our inclusion on the list,” and two years later, it has “determined it had no alternative other than to seek relief in federal court,” according to the recent court filing published by Politico.
DJI alleges that it has lost business deals and government agency contracts due to the DOD’s designation. Its employees also “now suffer frequent and pervasive stigmatization” and are “repeatedly harassed and insulted in public places.”
The news comes as some US officials are clamping down on the manufacturer. Earlier this week, DJI warned that US Customs and Border Protection is blocking imports of its drones, citing the Uyghur Forced Labor Prevention Act. The law, signed in 2021 by President Biden, bans the import of goods from China that use forced labor.
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The bill was drafted in response to China’s alleged treatment of the Uyghur Muslim minority, who have been widely reported as being used for forced labor, mainly in the Xinjiang region.
Meanwhile, on June 14, the US House of Representatives passed a bill to ban DJI’s drones from being sold in the US. However, even if that’s signed into law, existing owners would still have the right to fly DJI drones.
Though DJI has consistently denied any ties to the Chinese military, its products are commonly seen in war zones. The Ukrainian military has spent millions buying thousands of drones from DJI, Defense Now reports.
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Read More: Drone Maker DJI Sues US Over Inclusion on ‘Chinese Military Companies’ List