Hesai Group on Thursday said it plans to continue its legal process against the U.S. after the Pentagon reinstated the lidar manufacturer on its blacklist of Chinese firms allegedly working with Beijing's military.

The US Department of Defence is reinstating the Chinese lidar maker in its blacklist, reversing an earlier decision.

China’s Hesai plans to sue the US government after the Pentagon put the world’s biggest producer of laser sensors for electric vehicles back on its blacklist of Chinese companies affiliated with the military. David Li, Hesai’s co-founder and chief executive, told the Financial Times the company planned to challenge the Pentagon’s decision in court.

The blacklist stems from the 2021 National Defense Authorization Act, which requires the Pentagon to identify 'Chinese Military Companies' operating in the US

The world’s largest commercial drone manufacturer is taking on the Defense Department in a courtroom “Clash of the Titans” over a 2022 decision to put Shenzhen DJI Innovation Technology Co. — better known as DJI — on the Pentagon’s list of restricted companies that have links to China’s military and its Communist government.