Chinese drone manufacturer DJI has filed a lawsuit against the U.S. Department of defence (DoD), contesting its inclusion on a blacklist of Chinese military companies. The company announced the legal action on Saturday, challenging the Pentagon's classification, which it claims is incorrect.

"On October 18, DJI filed a lawsuit to challenge the Department of Defence’s (DoD) erroneous designation of the company as a 'Chinese military company,'" DJI said in a statement to AFP. The company firmly asserted its independence from the Chinese military, stating, "DJI is not owned or controlled by the Chinese military, and the DoD itself acknowledges that DJI makes consumer and commercial drones, not military drones." DJI added, "DJI is a private company and should not be misclassified as a military company."

DJI has been under increased scrutiny by Washington in recent years, partly due to allegations that its drones have been used to surveil ethnic minorities in China. Additionally, its drones have reportedly been deployed by both sides in the ongoing Ukraine war. In 2022, the Pentagon included DJI on its list of Chinese military-linked companies, claiming that China uses civilian entities such as DJI to access advanced technologies that contribute to military advancements. The Pentagon's statement highlighted concerns about China’s Military-Civil Fusion strategy, which aims to modernise the People’s Liberation Army (PLA) by leveraging civilian technology.

DJI, founded in 2006, said it had engaged with the DoD for over 16 months in an effort to address the classification before resorting to legal action. The company reiterated, “DJI is not owned or controlled by the Chinese military, and the DoD itself acknowledges that DJI manufactures consumer and commercial drones, not military drones. DJI is a private company and should not be misclassified as a military company.”

The lawsuit is the latest development in a series of actions by the U.S. government targeting Chinese technology companies over national security concerns. Last month, the U.S. Department of Commerce banned the sale of vehicles incorporating Chinese technology due to similar risks. DJI, a global leader in consumer and commercial drone manufacturing, produces drones used in various industries, including aerial photography, filmmaking, agriculture, search and rescue, and public safety.

Controversy has also followed DJI in the context of the Russia-Ukraine conflict. The Ukrainian government accused DJI of assisting Russia by providing its AeroScope system, which allegedly helped guide missile strikes. DJI has denied these allegations and suspended business operations in both Russia and Ukraine in April 2022 to reevaluate compliance with international regulations.

In addition to the current lawsuit, DJI was blacklisted by the U.S. Department of the Treasury in 2021 over claims that it supported the surveillance of the Uyghur minority in China's Xinjiang region, further straining its relationship with U.S. authorities.

The outcome of DJI's legal battle against the Department of Defence could have broader implications for Chinese tech companies operating under increasing scrutiny in the U.S.