WASHINGTON — China-based DJI sued the US Defence Department on Oct 18 for adding the drone maker to a list of companies allegedly working with Beijing's military, saying the designation is wrong and has caused the company significant financial harm.

DJI, the world's largest drone manufacturer that sells more than half of all US commercial drones, asked a US District Judge in Washington to order its removal from the Pentagon list designating it as a "Chinese military company," saying it "is neither owned nor controlled by the Chinese military."

Being placed on the list represents a warning to US entities and companies about the national security risks of conducting business with them.

DJI's lawsuit says because of the Defence Department's "unlawful and misguided decision" it has "lost business deals, been stigmatised as a national security threat, and been banned from contracting with multiple federal government agencies."

The company added "US and international customers have terminated existing contracts with DJI and refuse to enter into new ones."

The Defence Department did not immediately respond to a request for comment.

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