The U.S. authorities look to be on a mission that involves placing Chinese entities on a list that views these companies as a national security risk. Popular drone maker DJI has landed on the list and is now being categorized as a Chinese military company. The manufacturer of unmanned aerial vehicles has not taken the action from the government too kindly, as it has bounced back by suing the U.S. Department of Defense for wrongly placing it on the list.
More than half of U.S. commercial drones are sold by DJI, and it even put out a blog post saying that the company conducts zero collection of data that would be sent to the Chinese military and that operators have to opt-in to share this data with the drone maker. Unfortunately, as reported by Reuters, this did not deter the U.S. Department of Defense from placing DJI on the list, prompting a lawsuit from the latter. The company says that it has suffered severe financial harm and the designation is wrong.
As a result of being placed on the U.S. Department of Defense list, which DJI claims was an ‘unlawful and misguided decision,’ the company has ‘lost business deals, been stigmatized as a national security threat, and been banned from contracting with multiple federal government agencies.’ Both U.S. and overseas clients have terminated their contracts with DJI and are refusing to issue new ones, which has resulted in its reputation being tarnished, along with its revenue getting hammered.
DJI says that it filed the lawsuit after the U.S. Department of Defense did not engage with the company for over 16 months, saying that it had no other alternative remaining other than seeking relief in federal court. The U.S. government has been working at lightning pace to restrict
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