U.S. Appeals Court Orders Review of DJI Pentagon Blacklist

The U.S. Court of Appeals for the District of Columbia Circuit ordered a lower court to reconsider whether DJI, the world's largest drone maker, should be removed from a Pentagon blacklist of companies supporting the Chinese military. The appeals court ruled that the district court erred by relying only on unclassified records to conclude that DJI contributes to the Chinese defense industrial base. On remand, the district court may examine classified records to determine if the Secretary of Defense's determination should be upheld.

DJI argues that its placement on the list is "unlawful and misguided," claiming the designation has caused lost business deals and stigmatized the company as a national security threat. The company maintains it is "neither owned nor controlled by the Chinese military."

The Pentagon's list bars the Department of Defense from contracting with designated firms, with a broader ban on third-party purchases scheduled for 2027. This ruling follows a trend of Chinese firms, including WuXi AppTec and Alibaba, challenging their inclusion on the blacklist, which was expanded to 188 companies in June.