DJI military company — Chinese drone manufacturer DJI has welcomed a decision by a US appeals court to review its designation as a ‘Chinese military company’ by the US Department of Defense. The ruling, issued last Friday by the US Court of Appeals for the District of Columbia Circuit, sends the case back to a lower court for further proceedings, after finding that the earlier decision relied solely on unclassified evidence.

The Department of Defense first placed DJI on its blacklist in October 2026, alleging ties to China’s military. DJI responded by filing a lawsuit in October 2026, challenging the basis of the designation. In 2025, a lower US court sided with the Department of Defense, prompting DJI to appeal the decision.

US Court Questions Evidence Used in Blacklisting

The appeals court determined that the lower court erred by basing its ruling only on the unclassified record, without considering whether classified information might be relevant. This procedural issue has now led to a re-examination of the case. DJI stated that the court’s decision is ‘a significant step toward correcting an unjustified designation.’ The company maintains that it is not a military entity and has condemned the use of its drones in combat, claiming to have taken measures to prevent such misuse.

DJI further argues that the Department of Defense listed the company without sufficient evidence or due process, resulting in reputational and commercial harm. The company is a major player in the global drone industry, reportedly holding over half of the US commercial drone market. According to DJI, its products contributed $515 million to the US agriculture sector in 2026 alone.

The outcome of the renewed court proceedings could have broad implications for US-China technology relations and the global commercial drone market, as the case highlights ongoing tensions over technology and national security.