Loretta Lynch, the Attorney General under President Barack Obama, has turned legal advocate for DJI, a Chinese drone manufacturer labeled as a military affiliate by the Pentagon.
DJI, with Lynch's representation through her firm Paul, Weiss, Rifkind, Wharton & Garrison, disputes this classification in a federal lawsuit, asserting their civilian focus on drone products, Daily Caller reported.
Lynch, who served from 2015 to 2017 as U.S. Attorney General, is part of the legal team challenging the Pentagon's decision. In 2022, DJI was added to a list known as Section 1260H, designating firms believed to be linked to the Chinese military. This inclusion has triggered severe repercussions for DJI, affecting its financial standing and market reputation.
The lawsuit argues that DJI's connection to China's military is unjustly assigned. In response, DJI insists that it operates independently of the Chinese military, specializing solely in consumer and commercial drones. Moreover, they urge the Department of Defense to reconsider their status, arguing that a lack of substantial evidence exists and that the department has ignored requests for meetings.
Additionally, Republican Representative Elise Stefanik has spoken out against Lynch’s role, critiquing her engagement as detrimental to national interests. Furthermore, she points to broader issues with DJI, including its application of drones in the surveillance of Uyghur populations in China—a practice that has caught international condemnation.
Meanwhile, DJI has faced numerous Western sanctions, including import stops by U.S. Customs and Border Protection over allegations of Uyghur forced labor in their manufacturing process. At the same time, the company also battles accusations that its software potentially enables Chinese data access, raising espionage fears among U.S. lawmakers.
Despite these challenges, DJI has been proactive in the U.S., lobbying against restrictive laws and forming alliances like the Drone Advocacy Alliance to sway legislation. Their efforts include hiring ex-congressional staffers, aiming to soften political stances towards the regulation of Chinese-made drones.
In a detailed complaint against the Pentagon, DJI stated:
The drone manufacturer "is neither owned nor controlled by the Chinese military and … sells only 'consumer and commercial' — not military — drones," and the DOD has failed to "produce evidence to support its assertion to the contrary" and ignored "meeting requests with the company."
Representative Stefanik’s criticism underscores a broader discontent with Lynch's legal maneuvering. “Barack Obama’s former Attorney General Loretta Lynch has turned her back on her nation, selling out to our greatest adversary, Communist China, and suing the United States on behalf of the CCP-owned drone company DJI. Not only is her lawsuit full of factual errors, but it is also an obvious effort by DJI to distract from CBP’s recent halting of DJI imports due to Uyghur slave labor concerns and a futile attempt to disrupt the momentum behind my unanimously passed Countering CCP Drones Act. DJI’s time in the United States is rightfully coming to an end, and Loretta Lynch’s sham lawsuit is not going to save them,” Stefanik said.
Meanwhile, these developments unfold amid increasing tension between the U.S. and China over technology and security issues. Consequently, the outcome of this lawsuit may significantly influence future U.S. policies on Chinese technology firms.
Additionally, the case raises questions about the balance between national security and market competitiveness in a globally intertwined market.
As debates and legal battles progress, the key issues revolve around the legitimacy of the military designation by the Pentagon, the transparency and fairness of the process, and the broader geopolitical ramifications of such legal and regulatory confrontations.
Given that each side stands firm in their positions, the resolution of this case will likely resonate beyond the courtroom, affecting diplomatic relations and commercial strategies in the tech industry.
