Chinese drone maker DJI gets fresh chance to escape Pentagon’s blacklist

The U.S. appeals court has given DJI, the world's largest drone manufacturer based in China, another opportunity to escape the Pentagon's blacklist. The court ruled that the lower court made an error by relying solely on the unclassified record when determining if DJI contributes to China's defense industrial base. This decision sends the case back to the lower court for further proceedings.

The Defense Department, however, declined to comment on the matter as they are currently involved in ongoing litigation. DJI consistently maintains that it is not a military company. The Pentagon had previously denied DJI's request to be removed from the list, stating that the designation was lawful and necessary. DJI has faced significant consequences since being added to the list, including losing business deals, being stigmatized as a national security threat, and being prohibited from contracting with multiple federal government agencies.

The appeals court dismissed DJI's arguments related to due process, a lack of evidence in the unclassified record, and the inconsistency with how the department treats similar companies. Despite these setbacks, DJI remains determined to clear its name and continue its operations.