The US Court of Appeals for the District of Columbia Circuit ordered on August 14, 2026, that a federal district court review DJI's designation on the US Department of Defense’s Chinese military company blacklist [1, 2, 3, 4, 5]. The court found that the lower court erred by relying solely on unclassified records to affirm DJI’s contribution to China's defense industrial base without considering classified information [2, 3, 4, 5]. The case was sent back to allow a rehearing that may include classified evidence, which could affect whether DJI remains on the blacklist [2, 3, 4, 5].
DJI was first placed on the blacklist in 2022, barring it from contracts with the Defense Department or indirect procurement of its products through third parties; an expanded ban is set to take effect in 2027 [1, 2, 4, 5]. The company has repeatedly denied ties to the Chinese military, stating it is not a military-industrial company [1, 4, 5]. A DJI spokesperson called the appeals court ruling "an important step toward correcting this unjust designation," affirming the company’s consistent position [4].
DJI sued the Pentagon in 2024 to challenge its inclusion, arguing the designation is unlawful, misleading, and resulted in business losses and stigma [2, 3, 4, 5]. The federal district court ruled against DJI’s challenge in September 2025, prompting an appeal filed the following month [2, 3, 4, 5]. Other Chinese firms on the blacklist, like Wuxi AppTec and Alibaba, have also filed lawsuits against their inclusion [2, 4, 5].
In June 2026, the Pentagon expanded the blacklist to include 188 Chinese companies amid US concerns about Chinese military use of private sector technology, a list that still includes DJI [2, 4, 5]. The appeals court accepted only one of DJI’s four legal claims—that the lower court erred by relying solely on unclassified evidence without a public explanation from the Defense Secretary [4, 5].
The US Department of Defense declined to comment on the ongoing litigation, stating only, "Due to ongoing litigation, we decline to comment" [1, 4]. The federal district court must now conduct a rehearing that can consider classified records to reassess DJI’s status on the Pentagon blacklist.
