Washington, 15 August 2026 – Chinese drone manufacturer DJI is continuing its legal effort to leave the United States Defense Department’s list of companies deemed connected to China’s military-industrial system, keeping a high-stakes regulatory dispute alive at the appellate level. The case matters beyond government procurement because the designation can affect commercial trust, financing and access to the wider American market.
DJI challenged its inclusion on the Section 1260H list under federal administrative law and due-process principles. A district court ruled in September 2025 that the designation could stand, even while rejecting several elements of the government’s reasoning. DJI appealed, and the case proceeded in the federal appellate court in Washington, where oral argument was held in February 2026.
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