US authorities appear to be on a mission that involves placing Chinese entities on a list that views these companies as national security risks. Popular drone maker DJI has been included in the list and is now categorized as a Chinese military company. Unmanned aerial vehicle manufacturers didn’t take kindly to the government, as they bounced back by suing the US Department of Defense for incorrectly including them on the list.
A US District Judge was asked by DJI to remove his name from the Pentagon’s list of Chinese military companies
More than half of US commercial drones are sold by DJI, and DJI even issued a blog post saying that the company does not collect any data that would be sent to the Chinese military and that operators must opt in to sharing this data with drone makers. Unfortunately, as reported by Reuters, this did not prevent the US Department of Defense from including DJI on the list, triggering a lawsuit from the US Department of Defense. The company said it had suffered severe financial losses and the determination was wrong.
Due to its inclusion on the US Department of Defense list, which DJI claims was an ‘unlawful and misguided decision’, the company has ‘lost business deals, been stigmatized as a national security threat, and been barred from contracting with several federal agencies. government agencies.’ Both US and overseas clients have terminated their contracts with DJI and refused to issue new ones, leaving its reputation tarnished and its revenues suffering.
DJI said it filed the lawsuit after the US Department of Defense had no contact with the company for more than 16 months, and said it had no alternative but to seek a settlement in federal court. The US government has made immediate efforts to restrict Chinese companies from engaging in trade activities with the country, as they believe that continued ties will strengthen Beijing’s military. As tensions rise between the world’s two largest economies, this puts companies’ livelihoods at risk.
In May, LiDAR manufacturer Hesai filed a lawsuit, challenging its position on the Pentagon’s Chinese military designation. Fortunately for the company, the US Department of Defense removed Hesai from the list, but said it would add it again because the company posed a risk to national security.
News Source: Reuters
