LOST BUSINESS DEALS
In its lawsuit, DJI said the Defense Department’s addition of the company to the list was “unlawful and misguided”.
It said it has “lost business deals, been stigmatised as a national security threat, and been banned from contracting with multiple federal government agencies”.
The appeals court rejected DJI’s arguments that it was denied due process, that the unclassified record lacked evidence that DJI received assistance from the government through efforts initiated by the Chinese military industrial planning apparatus, and that the department failed to explain why it treated DJI differently from companies it believes are similarly situated.
However, the court found merit in DJI’s fourth argument – that the unclassified record did not support the conclusion that the company contributes to the Chinese defence industrial base.
Earlier this month, another judge granted a preliminary injunction barring the department from including Chinese biotechnology company WuXi AppTec on the list. The judge said the government lacked evidence to justify the decision.
In June, the Pentagon expanded its blacklist to 188 companies, reflecting concern that China’s military could tap that country’s private sector for advancements, amid geopolitical tensions between Beijing and Washington.
Other businesses added to the list include e-commerce company Alibaba, which sued in June seeking removal.