DJI secured a significant procedural victory after the US Court of Appeals for the District of Columbia Circuit ruled on Friday that a lower court did not adequately examine the evidence supporting the drone maker's placement on the Pentagon's Chinese Military Companies blacklist and sent the case back for reconsideration. The appellate court said there was "no publicly stated rationale for why the Secretary believes DJI contributes to the Chinese defense industrial base" and that the district court could not resolve that question using only non-classified records, requiring a fuller review that also covers classified material. The company, which was added to the list in October 2022 and filed suit in October 2024 after unsuccessful appeals, said the ruling supports its argument that the designation lacked sufficient evidence and due process. The case matters beyond the courtroom because DJI remains deeply embedded in U.S. civilian use despite policy pressure, with media reports cited in the source saying it holds 70% to 90% of the U.S. commercial drone market, is used by more than 80% of state and local law enforcement and emergency response agencies, and makes four out of every five agricultural drones in the country. DJI said it will continue to defend its rights and those of its global users through legal channels, while the final outcome remains uncertain.