"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 .

The Chinese drone manufacturer DJI has sued the U.S. Department of Defense for "erroneously" placing the company on a blacklist of entities suspected of collaborating with Beijing's military, AFP reported on Saturday.

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

China-based DJI sued the U.S. Defense Department on Friday 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.

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