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

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

The U.S. government is stopping imports of some DJI drones from entering the U.S., the Chinese drone maker told Reuters on Wednesday.

"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 .

SZ DJI Technology Co. said it has sued the US Department of Defense for adding the Shenzhen-based drone maker to a list that designates it as a Chinese military company.Most Read from BloombergA Broke

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

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

DJI, the world's largest commercial and consumer drone manufacturer, is taking on the US Department of Defence (DoD) for accusing it of being part of China's military and so putting a legal clamp on its sales in the USA.