Judge rules that DJI will stay on Pentagon list of Chinese military-linked firms ahead of potential ban

UPDATE: Sep. 30, 2025, 1:16 p.m. EDT — In an official statement provided to Mashable, DJI reiterated that it has no ties to the Chinese military, and said that the U.S. District Court for the District of Columbia rejected the DoD’s claims that the company “is owned or controlled by the Chinese Communist Party, affiliated with China’s Ministry of Industry and Information Technology, or affiliated with a military-civil fusion enterprise zone.” DJI also noted that the Court found only two of the DoD’s allegations were not “arbitrary and capricious,” and argued that those narrow conclusions ultimately reinforce that the company has no military affiliation.

DJI, the Chinese tech company and drone maker, has lost a lawsuit against the U.S. Department of Defense (DoD) and will remain on the Pentagon’s list of firms with ties to the Chinese military.

The ruling, handed down Friday, found that the DoD had "substantial evidence" to suggest DJI, one of the world’s largest consumer drone manufacturers, contributes to the "Chinese defense industrial base." However, the court rejected the DoD’s claim that DJI is "indirectly owned by the Chinese Communist Party."

In response to questions from Mashable, a DJI spokesperson emphasized that the company is not owned or controlled by the Chinese military, and noted that the DoD itself acknowledges the company produces consumer and commercial drones, not military hardware.

While no new smoking gun evidence was identified in the ruling, the federal judge wrote that the DoD (recently rebranded by the Trump administration as the "Department of War") is "owed heightened deference…in matters of national security."

Remaining on the list prevents the company from bidding on U.S. contracts, grants, and other programs, according to Reuters. It could also make American businesses wary of working with DJI, since partnering with a firm flagged by the Pentagon for ties to the Chinese military invites heightened scrutiny.

The ruling likely won't help DJI's efforts to stave off a potential ban of its popular drones later this year. As previously reported by Mashable, all drones manufactured in China must undergo a national security risk assessment by December 23, 2025, and the U.S. has yet to assess DJI. The company previously claimed that Customs and Border Protection has been blocking its drones from entering the country, and many DJI products are increasingly difficult to purchase in the United States.

In a statement to Mashable, DJI stressed that the lawsuit against the DoD is unrelated to the risk assessment audit.

"While DJI is pleased that the Court agreed with DJI and rejected most of DoD's purported justifications for listing DJI, we are disappointed that the Court nonetheless upheld the listing," a DJI spokesperson told Mashable in an email statement. "This decision was based on a single rationale that applies to many companies that have never been listed. DJI is currently evaluating its legal options in light of this decision."

Despite the ruling — and the looming potential ban of DJI drones — the spokesperson said that DJI "[remains] committed to serving our U.S. customers and partners, and we call for fair competition in the United States."