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Dronemaker DJI sues Pentagon over Chinese military listing, alleges significant financial harm

DJI, the world's largest drone manufacturer that sells more than half of all commercial drones in the United States, has sued the Department of Defense for classifying drone manufacturers as suspected of collaborating with the Chinese military.

On Friday, DJI asked a district judge in Washington to designate the company as a “Chinese military enterprise” and order it removed from the Pentagon's list, saying the company is “not owned or controlled by the Chinese military.”

DJI said the Pentagon's classification “has resulted in the loss of business deals, stigmatization as a national security threat, and prohibitions on contracts with multiple federal agencies.”

“Customers in the U.S. and abroad have terminated existing contracts with DJI and are refusing to enter into new contracts,” the complaint states.

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The store of Chinese drone manufacturer Dajiang Innovations Technology Co (DJI) in Shanghai, China, on December 8, 2016. (Toyo Image/Reuters Photo via Reuters Connect)

DJI announced Friday that it filed the lawsuit after the Pentagon failed to engage with the company over the designation for more than 16 months, saying it had “no choice but to seek relief in federal court.”

“On October 18, DJI filed a lawsuit challenging the Department of Defense's (Department of Defense) erroneous designation of the company as a 'Chinese military company,'” DJI told Fox News Digital on Friday. Meanwhile, DJI highlighted numerous flaws in the report on which the Department of Defense's decision to list DJI was based. Despite these efforts, the Pentagon has refused to remove DJI from the list. DJI determined it had no choice but to seek relief in federal court.

“DJI is not owned or controlled by the Chinese military, and the Department of Defense itself has acknowledged that DJI manufactures consumer and commercial drones, not military drones. DJI is a private company and the military The company disputes the CMC designation and claims it is not involved in any military activities. ”

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There are many major Chinese Companies including airlines are on the list AVIC, memory chip maker YMTC, China Mobile, and energy company CNOOC.

drone

The Federal Aviation Administration announced Monday that its notification system for drone pilots is down. (license/image)

US lawmakers say DJI drones Pose data transmission and monitoring The company refuses to do so, despite the national security risks.

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Last month, in the U.S. House of Representatives voted for bar DJI's new drones will be banned from operating in the US The bill awaits action by the US Senate.

Fox News Digital has reached out to the Department of Defense for comment.

Reuters contributed to this report.

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