Outburst! DJI sued the United States Department of Defense
DATE:  Oct 19 2024

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Overview 2024-10-19 13:44

Source: Shangguan News Author: Brokerage China

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According to a report by the global network on October 19, on October 18, United States Eastern Time, DJI filed a lawsuit against the United States Department of Defense for being wrongly included in the CMC sanctions list.

Previously, on August 16, China Micro Semiconductor Equipment (Shanghai) Co., Ltd. (hereinafter referred to as "China Micro Corporation") also announced that it had sued the United States Department of Defense for being included in the "blacklist". In May, Hesai filed a lawsuit in the United States to vigorously respond to the United States Department of Defense's allegations. Hesai Technology said that four of the six charges it brought to the United States Department of Defense alleging violations of the Federal Administrative Procedure Act.

Let's take a look at the detailed report.

DJI: Sue!

According to a report by the global network on October 19, on October 18, United States Eastern Time, DJI filed a lawsuit against the United States Department of Defense for being wrongly included in the CMC sanctions list. DJI has been committed to promoting the application and innovation of civilian drone products, and opposes the use of products for military purposes.

On January 31 this year, the United States Ministry of National Defense updated the list of "Chinese Chinese military-related military companies (CMCs)" in accordance with Article 1260H of the National Defense Authorization Act of 2021 for the purpose of "emphasizing and countering China's military-civilian integration strategy", aiming to identify Chinese military companies operating directly or indirectly in United States.

According to United States media, the bill will prohibit the United States Department of Defense from contracting with any designated company in the coming years, posing a significant reputational risk to Chinese companies and posing pressure on the United States Treasury Department to sanction these companies. A number of Chinese companies on the list have expressed their protest against the move.

AMEC and Hesai Technology previously sued the United States Department of Defense

On August 16, the WeChat public account of AMEC released "AMEC officially sued the United States Department of Defense on being included in the list of Chinese military enterprises", which reads as follows:

AMEC Semiconductor Equipment (Shanghai) Co., Ltd. (AMEC, SSE: 688012) announced that it has formally filed a complaint with the United States Court against the decision of the United States Ministry of National Defense to include it in the Chinese Military Companies List (CMC List).

On January 31, 2024 (United States Eastern Time), the United States Department of Defense added AMEC to the CMC list under Section 1260H of the National Defense Authorization Act for Fiscal Year 2021. AMEC firmly believes that the decision of the United States Department of Defense to include AMEC on the CMC list is wrong, untrue, without legal basis, and contrary to due process, which has a serious impact on AMEC's reputation.

Since being included in the CMC list, AMEC has done its best to actively communicate with the United States Department of Defense, clarify the facts, provide sufficient evidence to prove that it does not meet the criteria for recognition of the CMC list, and require AMEC to remove it from the CMC list. However, unfortunately, as of the date of the formal indictment, AMEC has not yet achieved its wish. Therefore, AMEC had to take legal steps to request the court to ask the United States Department of Defense to reverse its erroneous decision in order to eliminate misunderstandings, safeguard AMEC's legitimate rights and interests, and protect the interests of AMEC's shareholders, customers and partners.

Yin Zhiyao, chairman and general manager of AMEC, said: "We are deeply shocked that the United States Department of Defense has once again included AMEC in the military-related list. This decision is wrong and unfounded. We are confident that the court will make a fair decision to remove AMEC from the CMC list. At the same time, it is also willing to continue to maintain communication with the United States Department of Defense to properly resolve the existing disputes. ”

Hesai Technology Co., Ltd., a developer of self-driving car sensor technology, sued the United States Department of Defense for including the company on a list of companies accused of assisting the Chinese military, according to Bloomberg on May 14.

According to a complaint filed by the Shanghai-based company in federal court in Washington on the 13th, being included in the so-called 1260H list has caused it to "damage its reputation, a significant drop in its stock price, and the loss of some business opportunities." Nasdaq-listed Hesai Technology has urged a court to rule that the United States Department of Defense remove it from the list or declare the list unconstitutional.

According to Hesai Technology's official website, the company is a leading global LiDAR R&D and manufacturing company, and its products are widely used in passenger and commercial vehicles, autonomous vehicles, as well as unmanned delivery vehicles, AGVs and other intelligent robot applications that support advanced driver assistance systems (ADAS). Hesai has excellent R&D capabilities and deep technology accumulation in the core fields of LiDAR such as optics, mechanics, electronics, and software, with offices in Shanghai, Silicon Valley, Stuttgart, and other places, with customers in more than 40 countries around the world.

The Ministry of Foreign Affairs spoke

On February 1 this year, in response to the update of the "List of Chinese Military Enterprises" by the United States Department of Defense, then Foreign Ministry spokesman Wang Wenbin said that we firmly oppose the US side to generalize the concept of national security, set up discriminatory lists of various names, unreasonably suppress Chinese enterprises, and undermine normal Sino-US economic and trade cooperation. The US has violated the principle of market competition and international economic and trade rules that it has always flaunted, undermined the confidence of foreign enterprises in investing and operating in the United States, and harmed the interests of United States enterprises and investors.

Wang Wenbin pointed out that in fact, the United States government is the main promoter of the military-civilian integration policy. United States' military-civilian integration policy can be traced back to before World War I, when the United States Department of Defense set up offices in Silicon Valley and other major technology towns to guide high-tech companies to accelerate the militarization of technology. Many large United States multinational companies are military-civilian integration, and their business scope and product types span the military-civilian field, and we urge the US side to immediately correct the above-mentioned discriminatory practices and provide a fair, just and non-discriminatory environment for Chinese enterprises to operate. China will continue to firmly safeguard the legitimate and lawful rights and interests of its enterprises.

A spokesperson for the Ministry of Commerce said on May 10 that for a long time, the US has generalized the concept of national security, abused export control measures, suppressed and curbed enterprises of other countries, seriously damaged the legitimate rights and interests of enterprises, undermined the security and stability of global industrial and supply chains, and hindered the recovery and development of the world economy. China urges the US to immediately stop its erroneous practices and will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies.

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