WASHINGTON: Chinese drone manufacturer, DJI, filed a lawsuit against the United States’ Pentagon, contesting its placement on a roster of firms reportedly linked to the Chinese military.
The lawsuit was submitted in a federal court in the United States. It claims that the classification was incorrect and has led to considerable financial damage for the company.
Read more: Meta must face Massachusetts social media addiction lawsuit, judge rules
DJI is considered a “leading” manufacturer of drones within the industry. However, the company encountered suspicions of the United States government due to concerns regarding data privacy and reported connections to the Chinese government.
The Pentagon’s decision to include DJI on its list of companies allegedly cooperating with the Chinese military forced its name on the dreaded list.
In its legal filing, the drone manufacturer claimed that the Pentagon’s classification is based on misleading information and lacks credible evidence.
The company argued that the designation has negatively impacted its sale and partnerships, as potential clients were hesitant to engage with it.
DJI stated that the listing not only harmed its public image but also disrupted its business operations in an important, competitive market.
The lawsuit comes about amid escalating tensions between the United States and China, particularly in the technological sector, where the Asian giant has advanced by leaps and bounds.
Read more: AI research uncovers 160,000 new RNA viruses
The US government enacted several measures to limit the reach of Chinese tech companies, citing national security risks.
The measures include restrictions on the utilisation of Chinese technology in government functions and intensified scrutiny of foreign investments in US tech companies.