Overview

• U.S. District Judge Paul Friedman ruled Friday that DJI will remain on the Defense Department’s Section 1260H list after finding substantial evidence it contributes to China’s defense industrial base.
• The court rejected the Pentagon’s claim that DJI is indirectly owned by the Chinese Communist Party, undercutting one of the government’s broader assertions.
• Staying on the list blocks eligibility for U.S. government contracts and grants and increases commercial scrutiny, though it is not an outright sales ban; DJI has claimed Customs and Border Protection has impeded imports and that products are harder to find in the U.S.
• Friedman noted DJI technology has real military applications, citing battlefield use of modified consumer drones in Ukraine as evidence of the company’s contribution to defense capabilities.
• A congressionally mandated security assessment of China-made drones is due by December 23, 2025, and DJI says it is evaluating legal options after the ruling while continuing to serve U.S. customers.