The dc-circuit affirmed the district court’s summary judgment against DJI on three grounds but reversed the judgment regarding the Secretary’s finding that DJI “contributes” to the Chinese defense industrial base, remanding the case for further proceedings. Regarding the due process claim, the court held that the Fifth Amendment’s Due Process Clause did not apply because DJI failed to demonstrate a deprivation of a protected property or liberty interest under the “stigma-plus” doctrine. The court reasoned that while the designation caused reputational harm and some business losses, it did not “broadly preclude” DJI from pursuing its chosen trade or business, as DJI remains the global market leader in drones with significant sales to consumers and non-government entities worldwide. Consequently, the court rejected DJI’s argument that the lack of advance notice violated due process. On the substantial evidence claim, the court found that the unclassified record contained sufficient evidence to support the Secretary’s determination that DJI was “knowingly receiving assistance” from the Chinese government through science and technology efforts initiated by the military industrial planning apparatus. The court relied on the Secretary’s report, which cited DJI’s recognition as a “National Enterprise Technology Center” (NETC) by China’s National Development and Reform Commission—a body connected to the Central Military Commission—and the associated tax breaks, cash subsidies, and financial support. The court deemed it reasonable for the agency to infer current receipt of these benefits from news reports stating that NETCs enjoy such policy benefits and DJI’s history of receiving similar subsidies. Regarding the arbitrary and capricious claim, the court rejected DJI’s argument that the Secretary acted unreasonably by failing to explain why he designated DJI but not other companies like Nokia Bell or Volkswagen. The court noted that DJI improperly assumed facts about those companies not in the administrative record and that the “prior position” doctrine does not require an agency to investigate every potentially similarly situated entity globally before making a designation. However, the court reversed the judgment on the issue of whether DJI “contributes” to the Chinese defense industrial base. The Secretary’s report contained a section addressing this specific finding, but every word except the heading was redacted in the unclassified record. The district court had relied on arguments made by the Secretary’s attorneys and other parts of the report rather than the agency’s own stated grounds for that specific determination. The court held this violated the *Chenery* principle, which mandates that courts judge agency action solely by the grounds invoked by the agency. Because the unclassified record provided no rationale for the “contribution” finding, the district court could not uphold it based on post-hoc arguments or classified information without first reviewing the proper administrative basis. The practical consequence is that the case is remanded to the district court. On remand, the district court must examine the Secretary’s classified record *ex parte* and *in camera* to determine whether the classified justification supports the finding that DJI “contributes” to the Chinese defense industrial base. The district court also has discretion to assess whether DJI or its counsel may be granted some form of access to the classified record during these proceedings.