Chinese drone manufacturer DJI is in the international spotlight after filing a lawsuit in October against the U.S. Department of Defense. It marks a pivotal moment in the ongoing battle between the U.S. and Chinese high-tech firms, as they face increasing scrutiny and restrictions by the U.S. government. Our reporter Xu Hua has more.
A drone, meant to soar in the skies, is now in the crosshairs of the DoD, which has classified its producer as a "Chinese Military Company" and imposed sanctions. The Chinese company DJI states that after failing to engage with the DoD for more than sixteen months, DJI had no choice but to turn to the federal court.
XU HUA Shenzhen "From a legal perspective, what's at the core of DJI's complaint? How do relevant legal provisions uphold DJI's assertions? And what outcome might the verdict yield? Let's find out from some lawyers."
SUN YAFENG Founder and Lawyer, I Believe Law Firm "DJI claims that it is not owned or controlled by the Chinese military. Its shareholders are natural persons, such as its founders Wang Tao, Li Zexiang, and Xie Jia. These people are private individuals, not employees of the Chinese government. China's DJI drones have not participated in the plan of China's military-civilian integration promoters."
Experts say that DJI's lawsuit is not just about the company's fate, but about the broader implications for global supply chain and technological innovation.
CAO ZHONGXIONG Assistant President, China Development Institute "DJI is the top drone company in the world. Because of changes DJI is making, I think other companies in the same industry will also change how they do business globally."
The DoD's classification, DJI contends, is unsupported by evidence, echoing the frustration felt by other Chinese high-tech firms like Huawei, AMEC, and Hesai.
Huawei, for instance, has faced similar sanctions under the National Defense Authorization Act (NDAA), challenging the bill's constitutionality.
AMEC and Hesai, too, have been targeted for their technological advancements and market presence.
SUN YAFENG Founder and Lawyer, I Believe Law Firm "When doing business with the United States, you need to know, the U.S. places a strong emphasis on its own defense and national security. Then, follow their own rules and use similar tactics to counter any threats, resort to legal means to safeguard their legitimate rights and interests."
The dispute has also fuelled tensions between the two economic superpowers.
CAO ZHONGXIONG Assistant President, China Development Institute "This reflects the U.S. is using its technological hegemony to suppress the global industry and even the global investment environment. China's leading tech companies may need to adapt to this reality in the future."
As the world waits to see the outcome of DJI's lawsuit and similar cases, it is uncertain how these disputes will be resolved. However, one thing is clear: dialogue, rather than lawsuits, is crucial between the world's two largest economic powers. Xu Hua, CGTN, Shenzhen.
