Chinese Drone Giant DJI, Represented by Obama’s Former A.G. Loretta Lynch, Sues Pentagon Over National Security Threat Designation

Shenzhen DJI Innovation Technology Co., Ltd., commonly known as DJI, the Chinese drone manufacturer, has launched a lawsuit against the U.S. Department of Defense, challenging its designation as a “Chinese military company.”

The lawsuit, filed by the U.S. law firm Paul Weiss in Washington, D.C., accuses the Pentagon, including Secretary of Defense Lloyd Austin and Deputy Secretary for Industrial Base Policy Laura Taylor-Kale, of refusing to provide any rationale for DJI’s military designation and ignoring repeated requests for dialogue, Politico reported.

The Pentagon originally placed DJI on a list of “Military Companies Operating in the United States” in 2022, citing potential threats to national security.

This move followed the DoD’s 2021 decision to bar government agencies from using DJI products, alleging that the company’s drones could be used for espionage purposes or serve as surveillance tools for the Chinese Communist Party.

In the complaint, DJI argues that the DoD failed to provide any substantive evidence supporting the designation and refused to engage with DJI over a 16-month period, despite repeated attempts by the company to clarify the situation.

DJI contends that it has no ties to the Chinese military and that its products are strictly for consumer and commercial use, not military applications.

DJI points to numerous factual errors and procedural violations in the DoD’s decision-making process. For example, the lawsuit highlights the use of outdated and irrelevant information in the DoD’s rationale, including confusion over individuals with common Chinese names, and reliance on old, unrelated events that do not reflect DJI’s current operations.

According to DJI, these errors are part of a “deeply flawed” process, reminiscent of the Xiaomi case, where a similar DoD designation was overturned by a federal court.

DJI’s legal maneuver comes as it faces mounting scrutiny from Congress, with growing calls to ban its drones from U.S. airspace due to concerns over national security threats.

In August, the House Select Committee on China urged the Commerce Department to investigate DJI for allegedly attempting to circumvent U.S. trade restrictions using front companies, according to Reuters.

What’s even more alarming is the involvement of former Obama-era Attorney General Loretta Lynch, now a partner at the Paul Weiss law firm, in DJI’s defense.

Lynch has been instrumental in trying to influence the Pentagon on DJI’s behalf, sending a confidential letter in July 2023 requesting the removal of DJI from the military company list.

The letter, also signed by two other former top U.S. government lawyers with ties to the Obama administration, underscores the growing concern over the influence of former officials advocating for foreign firms with links to the Chinese Communist Party.

. @TheLastRefuge2
In Lynch’s letter, labeled “confidential treatment requested”, said DJI requested “a meeting to discuss this matter”.

Also signing the letter were former Assistant US Attorney Michael Gertzman & Associate W.H. Counsel under Obama – Robert Gonzalez.

— Ben Tallmadge (@BenTallmadge01) March 11, 2024

. @TheLastRefuge2
Chinese surveillance firm Tencent also hired Loretta Lynch’s law firm Paul Weiss to lobby against Trump’s ban on WeChat –
Roberto Gonzalez, ex Obama W.H. counsel, was on the team.https://t.co/Rt96txofUF

— Ben Tallmadge (@BenTallmadge01) March 11, 2024

Lynch’s advocacy on behalf of DJI has raised eyebrows, with many questioning the ethics of her actions, given the Defense Department’s assertion that DJI is complicit in China’s surveillance programs, including biometric tracking of Uyghur Muslims in Xinjiang.

Although DJI has denied these allegations, the U.S. Treasury and Commerce departments have cited these concerns as part of their rationale for increased sanctions.

Read the lawsuit below: