Authored by Andrew Moran via The Epoch Times,

Flying taxi maker Archer Aviation has alleged that its rival Joby Aviation has been misleading regulators and investors for years by hiding its connections to China.

In a March 9 filing in federal court in California, Archer accused Joby of running a manufacturing unit in Shenzhen, China, for more than a decade that received government grants intended to spur technological development and of carrying out fraudulent business practices that gave it an improper competitive edge.

“Joby has falsely presented itself as a domestically rooted, American-made, fully vertically integrated aviation company while covertly relying on its Chinese manufacturing subsidiary,” Archer alleged in the filing.

The lawsuit alleges that the company later hid aerospace components shipped from that facility by falsely labeling thousands of pounds of imported components as mundane consumer goods such as hair clips, napkins, socks, and similar products.

This approach, the suit alleges, allowed Joby to “evade U.S. tariffs, distort competition, improperly secure government contracts and strategic partnerships, and circumvent national-security oversight.”

Archer’s counterclaim, filed in a lawsuit initiated by Joby, further argues that Joby secured at least $131 million in U.S. Air Force contracts while marketing its aircraft as committed to American innovation, raising national security concerns in areas in which Chinese supply chain dependencies were not fully disclosed.

Alex Spiro, an attorney for Joby, said in a statement to The Epoch Times that the company “doesn’t respond to nonsense.”

“Archer’s constant legal issues and flailing business operations have left it no choice but to resort to invented nonsensical theories,” Spiro said in a statement. “We will see them in court.”

The latest legal development is part of a counterclaim to Joby’s November 2025 lawsuit against Archer.

Joby accused its competitor of using stolen information from a former employee to secure a partnership deal with a real estate development company.

The air taxi maker called it “corporate espionage, planned, and premeditated.”

This is not the first time that Archer has been involved in a legal dispute.

A Joby Aviation air taxi outside of the New York Stock Exchange ahead of its listing in the Manhattan borough of New York City, on Aug. 11, 2021. Andrew Kelly/Reuters

In August 2023, Archer settled a case against Boeing-owned Wisk Aero over alleged trade-secret theft.

In February, Archer filed suit in the U.S. District Court for the Eastern District of Texas, alleging that rival Vertical Aerospace recently redesigned its air taxi concept in a manner that infringes upon Archer’s patents.

Although the stocks of both Archer (ACHR) and Joby (JOBY) had a terrific 2025, they have struggled this year, with share prices falling by nearly 30 percent.

Flying taxis—also called electric vertical take-off and landing aircraft—have become a major industry worldwide, including in the United States and China.

The current market is valued at about $6.3 billion and is forecast to reach nearly $76 billion by 2035, according to Precedence Research analysts.

Although they are viewed as modes of transportation for wealthy clients, experts said they believe that they could eventually become a tool for individuals traveling to and from work.

“Flying taxis will be the fastest mode of transportation with lower traffic conjunctions and it gives a hassle-free experience to the consumers,” the analysts said in a Jan. 6 research note.

In summer 2025, President Donald Trump signed executive orders to “create a pilot program testing flying cars,” including air taxis.

Archer said on March 9 that the Department of Transportation and Federal Aviation Administration selected its partners in Florida, New York, and Texas to participate in the White House’s pilot program to bring electric air taxis to market.

Similar to nationwide robotaxi pilot initiatives, this initiative will allow Archer to collaborate with federal and state regulators and communities to “build trust and establish the playbook for safely scaling electric air taxis across the country.”

Joby said in February that it is partnering with Uber to launch a battery-powered aircraft ride-hailing service in Dubai, United Arab Emirates, this year.