A US federal appeals court has ordered a lower court to reconsider the Pentagon’s decision to blacklist Chinese drone maker DJI.
The US Court of Appeals for the District of Columbia Circuit issued the ruling on Friday, according to Chinese state media.
The appeals court said the lower court had relied solely on unclassified records when assessing DJI’s alleged links to China’s defence industry.
It also questioned whether the Pentagon had publicly explained why it believed DJI contributed to China’s defence industrial base.
Therefore, the appeals court sent the case back to the lower court for further proceedings.
DJI welcomed the ruling and described it as an important development in its long-running legal challenge against the designation.
The company has denied that its products or technologies should be used for military or wartime purposes.
Moreover, DJI said it would continue pursuing legal options to protect its interests and users.
The Pentagon placed DJI on its blacklist in October 2022, citing alleged links to China’s military.
After failing to overturn the designation through administrative channels, DJI filed a lawsuit against the decision in October 2024.
A lower court ruled in favour of the Department of Defense in 2025.
Consequently, DJI appealed the ruling and continued challenging the Pentagon’s designation.
The company argues that the Pentagon lacked sufficient evidence and denied it proper due process.
DJI has also claimed that the designation caused significant reputational and commercial damage to its business.
