DoD Can Keep Chinese Drone Maker on Section 1260H Roster
A federal judge has ruled that DJI, the world’s largest drone manufacturer, will remain on a U.S. Department of Defense list of “Chinese military companies.” The decision came Friday, September 26, 2025, from Judge Paul L. Friedman of the U.S. District Court for the District of Columbia.
The Section 1260H List
The Pentagon maintains the Section 1260H list as part of ongoing efforts to identify companies linked to China’s defense industrial base and the government’s policy of “military-civil fusion.” The designation does not directly prohibit sales in the U.S. market, but it does restrict the ability of federal agencies to contract with listed companies and can influence private sector partnerships.
DJI, based in Shenzhen, had challenged its inclusion, arguing the Department of Defense did not have sufficient evidence. The court disagreed, finding that the agency provided enough justification to keep DJI on the list.
Court’s Reasoning and DJI’s Response
Judge Friedman concluded that while not all of the Pentagon’s arguments were persuasive, a single strong rationale was enough to sustain the designation. The decision means DJI will remain on the list for the foreseeable future.
In a statement following the ruling, DJI said the decision was unfair and that the company was considering its options for appeal.
Broader Implications
Remaining on the Section 1260H list adds to the challenges DJI faces in the U.S. market. The company is already subject to restrictions under other federal measures, including the Commerce Department’s Entity List and the FCC’s Covered List. While the Section 1260H designation alone does not amount to a sales ban, it reinforces existing skepticism around government and enterprise adoption of DJI products.
The ruling also comes against the backdrop of broader U.S. legislative efforts. The FY2025 National Defense Authorization Act requires a formal review of DJI by U.S. national security agencies by December 23, 2025. If no review is completed, the law mandates DJI’s addition to the FCC’s Covered List, which would block new product certifications in the U.S.
What Comes Next
For DJI, the court decision underscores its uphill battle to preserve market access in the U.S. While consumer sales remain strong, government and enterprise buyers will likely continue to face pressure to look for alternatives, especially in public safety and defense applications.
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Miriam McNabb is the Editor-in-Chief of DRONELIFE and CEO of JobForDrones, a professional drone services marketplace, and a fascinated observer of the emerging drone industry and the regulatory environment for drones. Miriam has penned over 3,000 articles focused on the commercial drone space and is an international speaker and recognized figure in the industry. Miriam has a degree from the University of Chicago and over 20 years of experience in high tech sales and marketing for new technologies.
For drone industry consulting or writing, Email Miriam.
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This ruling highlights the ongoing tension between national security concerns and global technology markets. DJI’s continued presence on the Section 1260H list underscores how U.S. agencies are scrutinizing foreign tech companies with potential military links. While consumer drone sales may not be directly affected, government and enterprise buyers will likely continue seeking alternatives to avoid regulatory and reputational risks. It will be interesting to see if DJI pursues an appeal or adapts its strategy to maintain U.S. market presence.