Chinese drone-maker appeals court decision

Chinese drone-maker Dà-Jiāng Innovations, the world’s largest maker of commercial and recreation drones, is appealing a United States court decision upholding its designation as being linked to the Chinese military, thereby locking it out of the U.S. market.

DJI drones have dominated the U.S. market in agriculture, as well as being popular with first responders and real estate agents.

On Oct. 14, DJI announced that it has filed an appeal with the U.S. Court of Appeals for the D.C. Circuit following the ruling of the District of Columbia District Court in DJI v. U.S. Department of Defense. While the court upheld the Department of Defense’s designation of DJI as a “Chinese Military Company,” it also made several critical findings that reaffirm DJI’s long-held position that it is not owned by, controlled by, or otherwise affiliated with the Chinese government or military.

The court rejected most of DoD’s allegations, finding no basis for its claims that DJI is owned or controlled by the Chinese Communist Party, affiliated with China’s Ministry of Industry and Information Technology, or linked to any military-civil fusion enterprise zone.

The court upheld only two of the DoD’s assertions as not “arbitrary and capricious,” yet both are limited findings that reaffirm DJI’s lack of military affiliation:

DJI holds National Enterprise Technology Center status—a recognition widely granted to companies with “industry-leading technological innovation capabilities,” including major U.S. companies across food, apparel, automotive, and many other industries. This does not suggest any military connection.  DJI products have “substantial dual-use applications”—as is the case for many commercial technologies that are available off-the-shelf and could be misused in military contexts.

“We respect the Court’s process but are disappointed that the designation remains in place despite findings that reject the core of the DoD’s allegations,” said DJI spokesperson Adam Welsh. “We will continue to defend the integrity of our company as the findings reaffirm what we have maintained all along—that DJI operates independently, has no government or military affiliation, and is committed to the responsible development of drone technology.”

DJI claims it has taken “comprehensive measures” to prevent the misuse of its products, including for military purposes. It was the first drone company to publicly denounce and actively discourage combat use of its products, and it has never manufactured military equipment nor marketed drones for combat. DJI remains committed to enforcing and strengthening its policies that expressly prohibit such use.

Skeptics in the U.S. defense establishment point to Chinese laws requiring all Chinese companies to make all business data available on request to Communist Party officials. DJI is a privately-owned company, yet as a national champion has received fast-track investments from the state. It reportedly has a “party committee” to ensure that its business goals remain aligned with party objectives.

David Murray can be reached at [email protected].