For DJI, the world’s largest civilian drone manufacturer, that would be a huge blow. Beginning in early December, the company could potentially find itself banned from sales within the United States. This potential prohibition hinges on whether a national security agency determines that DJI’s drones do not “pose an unacceptable risk to the national security of the United States.” Things came to a head after a February 12 ruling by U.S. District Judge Paul Friedman. He supported upholding the Department of Defense’s classification of DJI as a Chinese military company.
The judge issued a well-reasoned order against clear, compelling evidence provided by the Department of Defense. This evidence amplified concerns about DJI’s support for the Chinese defense industrial base. DJI had previously filed a lawsuit against the Department of Defense, asserting that it is “not owned or controlled by the Chinese military.” Furthermore, the company emphasized that “the DoD itself acknowledges that DJI makes consumer and commercial drones, not military drones.”
DJI’s drones have recently been known for their ability to be modified and weaponized. Their use has been especially notable in the current conflict between Russia and Ukraine. This oncoming reality has alarmed U.S. lawmakers and leaders over what the world would look like if this disruptive technology ended up in an adversary’s hands. The company sands constant, bottomless pitfalls as, looking to the future legal minefield with which working the comp to minimize his losses, is forced.
In a statement responding to the ruling, DJI announced that it was disappointed and had been prepared for the ruling, and that it was reviewing its legal options. The company argued that the judgment was “based on a single rationale that applies to many companies that have never been listed,” suggesting that other businesses with similar characteristics have not faced similar scrutiny.
In its comments, DJI chimed in with a few examples of how these developments hurt its ability to operate. The company stated that it has “suffered ongoing financial and reputational harm, including lost business” due to the classification and subsequent legal actions. This incident is illustrative of the mounting qualms regarding foreign trade and national security.
Unsurprisingly, DJI is as aggressive as ever in chasing those consumer and commercial markets. The upcoming ban may alter what the company does in America about as drastically as possible. The company remains vigilant as it considers its next steps in addressing this legal challenge and protecting its market position.
