Drone-maker DJI has filed a lawsuit against the US Department of Defense, contesting its inclusion on a list of "Chinese military companies." The company claims the listing has caused significant financial and reputational harm, including lost business and harassment of employees.

DJI argues that the DoD's report justifying the listing contains inadequate and misleading information, applying the wrong legal standard and relying on outdated facts. The company's founder and CEO, Frank Wang, and three early-stage investors hold nearly 90% of the company's shares, contradicting the notion that DJI is controlled by the Chinese military.

This lawsuit marks the latest development in DJI's struggles with the US government, which has been increasingly wary of Chinese tech companies. In 2020, DJI was added to the Department of Commerce's Entity List, blocking US companies from selling to it, and later placed on the Treasury Department's investment blocklist over alleged involvement in the surveillance of Uyghur Muslims.

The outcome of this lawsuit will have significant implications for the tech and startup community, particularly for Chinese companies operating in the US.