D.C. Circuit partially reverses DJI challenge to Pentagon designation

The U.S. Court of Appeals for the D.C. Circuit has partially reversed a lower court ruling regarding DJI’s challenge to its designation as a ‘Chinese military company’ by the Department of Defense.

While the appeals court rejected three of DJI’s arguments—including claims regarding due process and the treatment of other companies—it agreed with the drone manufacturer on one specific issue. The court found that the district court erred in its review of the finding that DJI ‘contributes’ to the Chinese defense industrial base, noting that the supporting explanation was entirely redacted from the unclassified record. The court has sent this specific issue back to the district court for further proceedings, which may include an examination of the classified record.

Despite this partial reversal, DJI remains on the Department of Defense’s Section 1260H list and continues to face various U.S. market restrictions.