Drone maker DJI sues Pentagon over Chinese military listing

WASHINGTON — 

China-based DJI sued the U.S. Defense Department connected Friday for adding the drone shaper to a database of companies allegedly moving with Beijing's military, saying the designation is incorrect and has caused the institution important fiscal harm.

DJI, the world's largest drone shaper that sells much than fractional of each U.S. commercialized drones, asked a U.S. District Judge successful Washington to bid its removal from the Pentagon database designating it arsenic a "Chinese subject company," saying it "is neither owned nor controlled by the Chinese military."

Being placed connected the database represents a informing to U.S. entities and companies astir the nationalist information risks of conducting concern with them.

DJI's suit says due to the fact that of the Defense Department's "unlawful and misguided decision" it has "lost concern deals, been stigmatized arsenic a nationalist information threat, and been banned from contracting with aggregate national authorities agencies."

The institution added "U.S. and planetary customers person terminated existing contracts with DJI and garbage to participate into caller ones."

The Defense Department did not instantly respond to a petition for comment.

DJI said connected Friday it filed the suit aft the Defense Department did not prosecute with the institution implicit the designation for much than 16 months, saying it "had nary alternate different than to question alleviation successful national court."

Amid strained ties betwixt the world's 2 biggest economies, the updated database is 1 of galore actions Washington has taken successful caller years to item and restrict Chinese companies that it says whitethorn fortify Beijing's military.

Many large Chinese firms are connected the list, including aviation institution AVIC, representation spot shaper YMTC, China Mobile 0941.HK, and vigor institution CNOOC.

In May, lidar shaper Hesai Group ZN80y.F filed a suit challenging the Pentagon's Chinese subject designation for the company. On Wednesday, the Pentagon removed Hesai from the database but said it volition instantly relist the China-based steadfast connected nationalist information grounds.

DJI is facing increasing unit successful the United States.

Earlier this week DJI told Reuters that Customs and Border Protection is stopping imports of immoderate DJI drones from entering the United States, citing the Uyghur Forced Labor Prevention Act.

DJI said nary forced labour is progressive astatine immoderate signifier of its manufacturing.

U.S. lawmakers person repeatedly raised concerns that DJI drones airs information transmission, surveillance and nationalist information risks, thing the institution rejects.

Last month, the U.S. House voted to barroom caller drones from DJI from operating successful the U.S. The measure awaits U.S. Senate action. The Commerce Department said past period it is seeking comments connected whether to enforce restrictions connected Chinese drones that would efficaciously prohibition them successful the U.S. -- akin to projected Chinese conveyance restrictions.