China’s Hesai loses lawsuit against US government for blacklisting

(Reuters) -A U.S. court on Friday ruled against China-based Hesai Group in the lidar manufacturer’s lawsuit against the U.S. government for adding it to a blacklist of companies allegedly working with Beijing’s military.

The U.S. District Court for the District of Columbia ruled that the Defense Department’s finding that Hesai contributes "to the Chinese defense industrial base" is supported by substantial evidence reflecting lidar’s military application, national security concerns around Chinese lidar makers and Hesai’s cooperation with Chinese agencies.

Hesai, whose lidar sensors help self-driving cars and driver-assistance systems gain a three-dimensional map of the road, was added to the list early last year, along with over a dozen other companies.

The company challenged the designation and has said its has no connection "to the Chinese military or any other military body," and its products are "strictly for commercial and civilian use."

The court also said that an entity contributes "to the Chinese defense industrial base" if it produces a technology that has substantial military application, even if the product has commercial uses and is not directly supplied or used by the Chinese military.

The defense department and Hesai did not respond to requests for comment.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.Should you invest $2,000 in HSAI right now?

With HSAI making headlines, savvy investors are asking: Is it truly valued fairly? In a market full of overpriced darlings, identifying true value can be challenging. InvestingPro's advanced AI algorithms have analyzed HSAI alongside thousands of other stocks to uncover hidden gems. These undervalued stocks, potentially including HSAI, could offer substantial returns as the market corrects. In 2024 alone, our AI identified several undervalued stocks that later surged by 30 or more. Is HSAI poised for similar growth? Don't miss the opportunity to find out.

Reveal Undervalued Stocks Now