Dronemaker DJI sues Pentagon over Chinese military listing, alleges significant financial harm
China-based DJI sued the U.S. Defense Department on Friday
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DJI, the world's largest drone manufacturer that sells more than half of all U.S. commercial drones, sued the Department of Defense for classifying the drone maker as allegedly working with the Chinese military.
On Friday, DJI asked a U.S. District Judge in Washington 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 said that the DOD's classification had caused "lost business deals, been stigmatized as a national security threat, and been banned from contracting with multiple federal government agencies."
"U.S. and international customers have terminated existing contracts with DJI and refuse to enter into new ones," the lawsuit said.
MY CHINESE DRONE BAN IS A BIG WIN FOR US NATIONAL SECURITY BUT CCP TECH STILL POSES MAJOR THREATS
View of a store of Chinese drone maker Dajiang Innovations Technology Co (DJI) in Shanghai, China, 8 December 2016. (Oriental Image via Reuters Connect / Reuters Photos)
DJI said on Friday it filed the lawsuit after the Defense Department did not engage with the company over the designation for more than 16 months, saying it "had no alternative other than to seek relief in federal court."
"On October 18, DJI filed a lawsuit to challenge the Department of Defense’s (DoD) erroneous designation of the company as a ‘Chinese Military Company,’ DJI told Fox News Digital on Friday. "After attempting to engage with the DoD for more than sixteen months, during which time DJI highlighted numerous deficiencies in the report that formed the basis for the DoD's decision to list DJI. Despite these efforts, the DoD declined to remove DJI from the list. DJI determined it had no alternative other than to seek relief in federal court.
"DJI is not owned or controlled by the Chinese military, and the DoD itself acknowledges that DJI makes consumer and commercial drones, not military drones. DJI is a private company and should not be misclassified as a military company. The company disputes the CMC designation and maintains that it is not affiliated with any military activities."
Many major Chinese firms are on the list, including aviation company AVIC, memory chipmaker YMTC, China Mobile, and energy company CNOOC.
The notification system for drone pilots wqs down Monday, the Federal Aviation Administration said. (iStock / iStock)
U.S. lawmakers have repeatedly raised concerns that DJI drones pose data transmission, surveillance and national security risks, something the company rejects.
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Last month, the U.S. House voted to bar new drones from DJI from operating in the U.S. The bill awaits U.S. Senate action.
Fox News Digital has reached out to the Department of Defense for comment.
Reuters contributed to this report.