U.S. Appeals Court Revives DJI Challenge to Pentagon Blacklist

A federal appeals court has ordered a lower court to re-examine the Pentagon’s designation of drone giant DJI as a military-linked entity, citing a lack of public evidence to support the claim. The ruling marks a significant procedural victory for the company in its ongoing battle against national security restrictions.

Editorial·August 14, 2026·reads: 434

U.S. Appeals Court Revives DJI Challenge to Pentagon Blacklist

The U.S. Court of Appeals for the District of Columbia Circuit determined that a district judge erred by relying solely on an unclassified record when upholding the company’s placement on the blacklist. While the appellate court dismissed DJI’s broader claims regarding due process and inconsistent treatment, it found merit in the argument that the government failed to justify why the firm is considered a contributor to China’s defense industrial base.

Placement on the list prohibits the Defense Department from contracting with the company, with a wider ban on third-party product purchases scheduled for 2027. DJI maintains it is neither owned nor controlled by the Chinese military, asserting that the designation has caused significant financial harm and unfairly stigmatized the brand. The district court is now instructed to review classified materials to determine if the Secretary of Defense’s original decision holds water under deeper scrutiny. This legal pushback arrives as the Pentagon continues to aggressively expand its list, which now encompasses 188 Chinese firms, including Alibaba and WuXi AppTec.