Overview

• DJI said on October 14 it filed an appeal to the U.S. Court of Appeals for the D.C. Circuit challenging a district court ruling that kept the Pentagon designation in place.
• The judge rejected claims that DJI is owned or controlled by the Chinese Communist Party but found its drones have substantial dual‑use military applications that can support China’s defense industrial base.
• DJI maintains it makes only civilian products, has publicly discouraged combat use of its drones, and says it will continue to defend its integrity in court.
• The listing does not ban consumer sales but limits eligibility for U.S. government contracts and, according to DJI, has led to lost deals as CBP import holds over forced‑labor allegations disrupted supply earlier this year.
• Additional pressure points include required FCC security audits for covered entities and a congressionally mandated national security review of Chinese‑made drones due by December 2025 that could trigger further restrictions.