The US District Court for the District of Columbia on Friday ruled that the US Defence Department’s finding that Hesai contributes “to the Chinese defence 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.

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, however, ruled that an entity contributes “to the Chinese defence 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 defence department and Hesai did not respond to requests for comment.