China's Hesai to sue Pentagon after being reinstated to blacklist, FT reports

(Reuters) - Chinese lidar manufacturer Hesai plans to sue the U.S. government after the Pentagon reinstated the company on its blacklist of Chinese firms linked to the military, Financial Times reported on Thursday, citing co-founder David Li.

The company planned to challenge the Pentagon's decision in court, he told the newspaper.

Being placed on the list represents a warning to U.S. entities and companies about the national security risks of conducting business with them.

The U.S. Defense department removed Hesai from the list of companies allegedly working with Beijing's military, but immediately decided to re-list the firm in a court filing and two letters sent to Congress earlier this month.

"We are not a military company, we don't contribute to or have any connection with the Chinese military or military body," Li told the FT. "We operate independently, free of government control or military involvement," he added.

Hesai and the U.S. Department of Defense did not immediately respond to Reuters' requests for comment.

Hesai, whose lidars help self-driving cars and driver-assistance systems gain a three-dimensional map of the road, was added to the list by the U.S. Department of Defense in January along with over a dozen other companies.

Last week, China-based drone maker DJI sued the U.S. Defense Department for adding it to a list of companies allegedly working with Beijing's military.

(Reporting by Bipasha Dey in Bengaluru; Editing by Janane Venkatraman and Sonia Cheema)