DJI Wins Key Procedural Victory in Lawsuit Against U.S. Defense Department, As American Market Remains Heavily Dependent on Its Drones

Deep News
08/17

According to information obtained by a reporter from DJI on August 17, a significant substantive development occurred in the lawsuit filed by DJI against the U.S. Department of Defense on August 14 local time. The U.S. Court of Appeals for the District of Columbia Circuit ruled that the lower court must re-hear the case involving DJI's inclusion on the Pentagon's "Chinese Military Company" blacklist. This decision marks an important procedural victory for the company's multi-year legal battle in the United States.

Previous public reports indicate that DJI was first added to the U.S. Department of Defense's "Chinese Military Company" blacklist in October 2022. The company has repeatedly issued statements publicly opposing this designation. After unsuccessful appeals, DJI formally filed a lawsuit in the U.S. District Court for the District of Columbia in October 2024. In 2025, the lower court issued a ruling favorable to the U.S. Department of Defense, prompting DJI to file an appeal.

According to information gathered by a reporter, the latest ruling from the U.S. Court of Appeals on August 14 focused on the core issue of "whether DJI contributes to China's national defense industrial base." The appeals court found that the lower court had review deficiencies and insufficient evidence, and it ordered the case to be remanded to the district court for a new trial. This includes reviewing non-public classified evidence to determine whether DJI should remain on the CMC list.

Since being wrongly placed on the blacklist in 2022, DJI has persistently sought relief through legal channels. The company has repeatedly pointed out that the U.S. Department of Defense added it to the list without sufficient evidence or due process, causing significant reputational and commercial damage.

In response to the latest ruling from the appeals court, DJI provided a statement to a reporter: "We welcome this positive ruling from the U.S. Court of Appeals, which is an important step toward ultimately correcting the improper designation. This ruling also further confirms DJI's consistent and firm opposition to the use of its products and technology for any military or warfare purposes. Moving forward, we will continue to use legal means to resolutely defend the legitimate rights and interests of the company and its global users."

In recent years, despite facing multiple unreasonable policy pressures and bans in the United States, DJI's products and technology remain highly irreplaceable in American civilian markets, including consumer use, grassroots law enforcement, firefighting, and agriculture. According to previous media reports, DJI holds a 70% to 90% share of the U.S. commercial drone market. More than 80% of state and local law enforcement and emergency response agencies across the country use DJI technology. Among every five agricultural drones in the U.S., four are DJI products. American frontline public safety departments are deeply reliant on DJI equipment. Multiple fire departments and police departments have stated that DJI drones offer absolute advantages in price, performance, and reliability, making them indispensable tools for ensuring local public safety and emergency rescue. For example, in an interview with the Wall Street Journal in May of this year, one police department noted that "DJI drones are the only affordable detection tool within our budget, while comparable American-made brands are often three to five times more expensive and fail to match their performance."

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