DJI scores a win in fight against US ban, appeals court orders fresh review of firm's 'Chinese military company' designation — drone maker will stay on Pentagon list while a judge examines classified evidence for the first time
The DC Circuit reversed one of four findings, ruling that a lower court upheld a fully redacted justification without reading the classified record behind it.
The U.S. Court of Appeals for the D.C. Circuit recently overturned a ruling that kept drone manufacturer DJI on the Pentagon's Section 1260H list of Chinese military companies. The court found that a district judge upheld the government's core claim that DJI contributes to China's defense industrial base, but did so without reviewing the classified evidence supporting this assertion.
The unclassified portion of the Pentagon's December 2024 designation report redacts all details of this claim except for its heading. DJI's lawyers had argued that they had never received any assistance from China through this recognition, but the court dismissed this as a "self-serving assertion by counsel." Despite DJI's market dominance in the global consumer drone market, the court deemed the potential loss of contracts insufficient to overturn the designation.
The case will now return to the lower court for further review, including potentially allowing DJI's lawyers to examine the classified evidence.
Written by urgent.news from Tom's Hardware's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
