Chinese drone maker DJI on August 17 welcomed a U.S. appeals court decision to reconsider its alleged ties to China's military, saying it expects to "set the record straight as the case moves forward."

The U.S. Department of Defense (DoD) first placed DJI on its blacklist of alleged Chinese military companies in October 2022.

DJI filed a lawsuit to challenge the DoD in October 2024. In 2025, a lower court in the United States issued a ruling in favor of the DoD, prompting DJI to appeal.

The order, issued on August 14 by the U.S. Court of Appeals for the District of Columbia Circuit, ruled that the lower court erred by relying only on the unclassified record in concluding that DJI contributes to the Chinese defense industrial base. The case has been sent back to the lower court for further proceedings.

DJI said in a statement that the court's finding "is a significant step toward correcting an unjustified designation," reiterating that it is a non-military company and that it has firmly condemned the use of its products in combat and taken active steps to prevent it.

The DoD listed DJI without sufficient evidence or due process and has caused significant reputational and commercial losses to the company, the company has said.

DJI is one of the world's leading drone makers, with its products taking over half of America's commercial drone market, according to statistics. It contributed $515 million to the U.S. agriculture sector in 2023 alone, according to the company.