DJI Wins! Removed from Trump-Era Pentagon 'Communist Chinese Military Company' List as Federal Court Rules Evidence Insufficient, Orders Reassessment

DJI, the world’s largest drone manufacturer, has achieved a significant legal breakthrough after challenging its placement on the U.S. Department of Defense’s (DoD) list of 'Chinese military companies.' A U.S. federal appeals court recently ruled that the lower court must reevaluate whether DJI should be removed from the list.

On Friday, August 14, the U.S. Court of Appeals for the District of Columbia Circuit ordered a rehearing on whether DJI should be delisted from the Pentagon’s 'Communist Chinese Military Companies' (CCMC) list. The court found that the lower court erred by relying solely on non-classified records to conclude that DJI contributes to China’s defense industrial base.

The Pentagon added DJI to the CCMC list in 2022, citing alleged links to the Chinese military. Inclusion on the list prohibits the DoD from contracting with listed companies. A broader ban, which will prohibit procurement of their products through third parties, is set to take effect in 2027. In 2024, DJI filed a lawsuit demanding removal from the list. Last September, a federal district judge in Washington, D.C. dismissed the case. DJI appealed one month later.

In its lawsuit, DJI argued that the DoD’s designation was “unlawful and misleading,” claiming it has suffered business losses, reputational harm by being labeled a national security threat, and exclusion from contracts with multiple federal agencies.

DJI challenged the CCMC designation on four grounds:

First, the DoD failed to follow due process before making the determination.

Second, the unclassified record lacks evidence that DJI received government support through technology initiatives led by Chinese military-industrial planning entities.

Third, the DoD did not explain why DJI was treated differently from other companies that DJI claims are in similar circumstances.

Fourth, the unclassified record is insufficient to support the conclusion that DJI contributes to China’s defense industrial base.

The D.C. Circuit Court of Appeals accepted only the fourth argument. The court stated: “There is no publicly articulated theory explaining why the Secretary of Defense concluded that DJI contributes to China’s defense industrial base.” The case was remanded to the lower court for further proceedings.

A DJI spokesperson called the ruling “an important step toward correcting this unjust designation,” reiterating that DJI has always maintained it is not a military company. A Pentagon spokesperson declined to comment on ongoing litigation.

Earlier this month, another judge issued a preliminary injunction blocking the DoD from adding a Chinese biotech firm to the list, citing lack of supporting evidence.

In June 2025, the Pentagon expanded the blacklist to 188 companies, reflecting growing U.S. concerns that the Chinese military may leverage private-sector technological advancements. This comes amid heightened geopolitical tensions between Beijing and Washington. Other companies on the list include e-commerce giant Alibaba, which filed a lawsuit in June seeking removal.

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