WASHINGTON, Oct 18 (Reuters) -
China-based DJI sued the U.S. Defense Department on Friday for adding the drone maker to a list of companies allegedly working with Beijing's military, saying the designation is wrong and has caused the company significant financial harm.
DJI, the world's largest drone manufacturer that sells more than half of all U.S. commercial drones, asked a U.S. District Judge in Washington to order its removal from the Pentagon list designating it as a "Chinese military company," saying it "is neither owned nor controlled by the Chinese military."
Being placed on the list represents a warning to U.S. entities and companies about the national security risks of conducting business with them.
DJI's lawsuit says because of the Defense Department's "unlawful and misguided decision" it has "lost business deals, been stigmatized as a national security threat, and been banned from contracting with multiple federal government agencies."
The company added "U.S. and international customers have terminated existing contracts with DJI and refuse to enter into new ones."
The Defense Department did not immediately respond to a request for comment.
DJI said on Friday it filed the lawsuit after the Defense Department did not engage with the company over the designation for more than 16 months, saying it "had no alternative other than to seek relief in federal court."
Amid strained ties between the world's two biggest economies, the updated list is one of numerous actions Washington has taken in recent years to highlight and restrict Chinese companies that it says may strengthen Beijing's military.
https://www.reuters.com/legal/chine...gon-over-chinese-military-listing-2024-10-19/
