A US federal appeals court has ordered a lower court to reconsider the legality of the Pentagon's decision to place Chinese drone maker DJI on a blacklist of companies allegedly linked to China's military, Chinese state-run media reported on Monday.
The US Court of Appeals for the District of Columbia Circuit ruled Friday that the lower court erred in relying solely on unclassified records when it concluded that DJI contributes to China's defence industrial base, the Global Times reported.
"There is ... no publicly stated rationale for why the Secretary believes DJI contributes to the Chinese defence industrial base," the appeals court said, according to the report.
The case was sent back to the lower court for further proceedings.
DJI challenges designation
DJI described the ruling as an "important step" in its years-long legal challenge against the US Department of Defense designation.
"We welcome this positive ruling by the US appeals court, which represents an important step towards the ultimate correction of [the DoD's] wrongful designation," DJI told the Global Times.
The company reiterated its opposition to the use of its products and technologies for military or wartime purposes and said it would continue pursuing legal avenues to protect its interests and users.
Blacklist dispute
The Pentagon added DJI to its blacklist in October 2022. After unsuccessfully challenging the designation through administrative channels, the company filed a lawsuit in October 2024.
A lower court ruled in favour of the Department of Defense in 2025, prompting DJI to appeal.
DJI has argued that the Pentagon designated it without sufficient evidence or due process and that the decision caused reputational and commercial damage.
