DJI, a tech firm from China and drone producer, has faced a legal defeat against the U.S. Department of Defense (DoD) and will continue to be listed among companies with affiliations to the Chinese military. The decision, announced on Friday, revealed that the DoD had “significant evidence” indicating DJI supports the “Chinese defense industrial base,” although the court dismissed the assertion that DJI is “indirectly owned by the Chinese Communist Party.”

A representative from DJI informed Mashable that the organization is neither owned nor controlled by the Chinese military, stressing that the DoD recognizes DJI manufactures consumer and commercial drones, not military equipment.

Despite the absence of new evidence in the ruling, the federal judge remarked that the DoD, which has recently been renamed the “Department of War,” deserves “heightened deference…in matters of national security.” Staying on the list prohibits DJI from participating in U.S. contracts, grants, and other initiatives, as reported by Reuters. This may also dissuade American companies from collaborating with DJI due to intensified scrutiny from the Pentagon.

The ruling could impede DJI’s attempts to evade a possible ban on its drones later this year. As previously noted by Mashable, all drones produced in China are required to undergo a national security risk evaluation by December 23, 2025, and the U.S. has not yet assessed DJI. The firm has alleged that Customs and Border Protection has been preventing its drones from entering the U.S., causing many DJI products to become increasingly difficult to acquire in the country.

In a statement to Mashable, DJI clarified that the lawsuit filed against the DoD is distinct from the risk assessment audit. A DJI spokesperson voiced disappointment that the court maintained the listing despite largely rejecting the DoD’s justifications. DJI is reviewing its legal alternatives in light of the ruling. Notwithstanding the decision and the looming ban, the spokesperson reaffirmed DJI’s dedication to serving U.S. customers and partners, advocating for fair competition within the United States.