Chinese drone maker DJI gets another shot at Pentagon blacklist removal

Court grants DJI another review in blacklist challenge

A US appeals court on Friday gave Chinese drone maker DJI another opportunity to contest its placement on the Pentagon's list of companies allegedly linked to the Chinese military. The ruling from the US Court of Appeals for the District of Columbia Circuit did not remove DJI from the list, but it sent the case back to the lower court for further review of one aspect of the Defence Department's justification.

The decision comes after a lower court in 2025 ruled in favor of the Department of Defense (DoD), prompting DJI to appeal. DJI filed its lawsuit challenging the designation in October 2024, years after the Pentagon first placed the company on its blacklist in October 2022.

The appeals court found that the lower court erred by relying solely on the unclassified record in concluding that DJI contributes to the Chinese defense industrial base, according to a report from Guangdong News. The case has been remanded for further proceedings.

DJI welcomes ruling

DJI welcomed the appeals court's decision, expressing confidence in its position. In a statement, the company said the court's finding "is a significant step toward correcting an unjustified designation," as reported by Guangdong News.

"We expect to set the record straight as the case moves forward," DJI said, according to the same report. The company reiterated that it is a non-military entity and that it has condemned the use of its products in combat and taken steps to prevent such use.

The South China Morning Post noted that DJI did not immediately respond to a request for comment as of Friday afternoon. The Defence Department declined to comment on the ongoing litigation.

Background of the designation

DJI's inclusion on the Pentagon's Chinese military company list dates back to 2022. The company petitioned the Defence Department for delisting and later sued over its designation, as detailed by the South China Morning Post. DJI has consistently denied any ties to the Chinese military.

Guangdong News reported that DJI has argued the DoD listed it without sufficient evidence or due process, causing significant reputational and commercial losses. The company also highlighted its market presence, noting that its products account for over half of America's commercial drone market and that it contributed $515 million to the US agriculture sector in 2023.

The appeals court's decision marks the latest development in a legal battle that has drawn attention to the intersection of US national security concerns and the commercial drone industry.