The company continues to allege it has no ties to the Chinese military and has lost government contracts due to US sanctions.

"For years, the U.S. government has known that DJI presents unacceptable economic and national security risks but no one was willing to take the necessary steps to remove Communist Chinese spy drones from our skies," bill sponsor Elise Stefanik (R-NY) said .

DJI sues Pentagon over Chinese military designation, claiming significant financial harm and challenging the Defense Department's decision.

DJI, the world's largest drone manufacturer that sells more than half of all U.S. commercial drones, asked a U.S. 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."

The lawsuit reflects how the company is going on the offensive as it faces a congressional push to ban DJI’s drones from use in U.S. airspace.

DJI claims it operates solely in the commercial sector with no military ties, disputing the Pentagon's designation.

The China-based maker of more than half of all commercial drones in the U.S. went to court to fight its placement on a list of companies said to be working with the Chinese military.

DJI challenges Pentagon's "Chinese Military Company" designation in a landmark lawsuit, raising questions about government overreach.