Overview

• U.S. District Judge Paul Friedman on Friday rejected DJI’s challenge, leaving the drone maker on the Defense Department’s Section 1260H roster of Chinese military companies.
• The court found substantial evidence that DJI contributes to China’s defense industrial base, while rejecting a claim that the company is indirectly owned by the Chinese Communist Party.
• Remaining listed bars DJI from U.S. contracts and grants and has heightened private‑sector caution, with some shipments reportedly held by Customs and Border Protection.
• A national security risk assessment for China‑made drones is due by December 23, 2025, and DJI has not yet been reviewed, creating the possibility of broader restrictions.
• DJI said most DoD justifications were rejected by the court, called the decision based on a single rationale, and said it is evaluating legal options while continuing U.S. operations.