The lawsuit, filed on Friday, comes after the company says it spent more than sixteen months attempting to engage with the DoD but was left with no choice but to seek federal court relief.
DJI, a Chinese firm known for producing consumer and commercial drones, was added to the DoD’s list in 2022. This action followed prior restrictions imposed by other US agencies.
In 2020, the Department of Commerce placed DJI on its Entity List, which blocked US companies from selling to the firm. In 2021, the Treasury Department added DJI to an investment blocklist, citing its alleged role in the surveillance of Uyghur Muslims in Xinjiang.
DJI has consistently denied these allegations, stating that it has no involvement in such activities.
In its lawsuit, DJI argues that the DoD’s report justifying the listing is based on inadequate and outdated information. The company claims the report misinterprets facts, including confusing individuals with common Chinese names and applying incorrect legal standards.
DJI further asserts that its founder and CEO, Frank Wang, along with three early investors, control nearly all of the company’s voting rights and shares, countering the claim that DJI is affiliated with the Chinese military.
The lawsuit states that the designation has caused DJI financial and reputational damage, leading to lost business opportunities and harassment of its employees.
The DoD has not issued a public statement regarding the lawsuit.