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DJI Gets New Chance to Challenge US Military Blacklist

WASHINGTON — August 14, 2026

Chinese drone maker DJI has gained another opportunity to challenge its inclusion on a U.S. Defense Department list of companies alleged to support China’s military. A U.S. appeals court has sent the case back to a lower court, finding that the publicly available evidence did not adequately support the government’s conclusion about the company.

The U.S. Court of Appeals for the District of Columbia Circuit said the lower court had relied on the unclassified record when deciding that DJI contributes to China’s defense industrial base. The appeals court found merit in DJI’s argument that this record did not provide enough support for that conclusion.

The decision does not remove DJI from the Pentagon’s list. Instead, it requires the lower court to reconsider the company’s challenge and determine whether its designation is supported by the evidence.

DJI is one of several Chinese companies contesting their inclusion on the Pentagon’s list. The designation prevents the U.S. Defense Department from entering into contracts with listed companies, while a broader restriction on purchasing their products through third parties is scheduled to begin in 2027.

DJI has consistently denied being a military company. A company spokesperson described the appeals court ruling as an important step toward overturning what DJI considers an unjustified designation.

The Defense Department declined to comment on the ongoing legal proceedings. A Washington federal judge, Paul Friedman, had previously rejected DJI’s request to be removed from the list and ruled in favor of the government.

In its lawsuit, DJI argued that its designation was unlawful and had caused significant commercial consequences. The company said it had lost business opportunities, faced reputational damage and been prevented from entering into contracts with several U.S. government agencies.

The appeals court rejected several other arguments raised by DJI. These included claims that the company had been denied due process, that there was insufficient evidence of government assistance linked to China’s military industrial planning system, and that the government had failed to explain why DJI was treated differently from comparable companies.

However, the judges agreed that DJI had raised a valid issue over whether the unclassified evidence actually demonstrated that the company contributes to China’s defense industrial base. That finding prompted the court to return the case to the lower court.

The ruling comes as other Chinese companies are also challenging their inclusion on the U.S. list. Earlier this month, a separate judge temporarily blocked the Defense Department from adding Chinese biotechnology company WuXi AppTec to the list, saying the government had not provided sufficient evidence to support the designation.

The Pentagon expanded its list to 188 companies in June. The U.S. government has said the measure reflects concerns that China's military could benefit from technological advances developed by private companies as strategic competition between Washington and Beijing grows.

Other major Chinese businesses have also challenged their designations. E-commerce company Alibaba, which was added to the list, filed a lawsuit in June seeking to have its designation removed.

The legal challenges could have wider implications for how the U.S. government identifies companies it believes are connected to China’s military and what evidence must be provided to support those decisions.

For DJI, the latest ruling offers a fresh legal opportunity but does not guarantee that it will be removed from the Pentagon’s list. The company must now continue its challenge before the lower court, where the evidence supporting its designation will be reconsidered.