Court Tells Hesai, DOD to Talk Next Steps After Chinese Military Company Relisting

Chinese lidar company Hesai Technology will meet with the U.S. to discuss next steps in the company's lawsuit against its designation as a Chinese military company after the Pentagon removed the firm from its list of companies with ties to China's military but immediately relisted it (see 2410230018). DOD relisted the company "based on the latest information available" (Hesai Technology Co. v. U.S. Department of Defense, D.D.C. # 24-01381).

Hesai challenged the designation in the U.S. District Court for the District of Columbia, launching its suit in February 2024 (see 2402080030). The company asked the court to order the U.S. to show cause why the court shouldn't fully adjudicate the case on the initial designation given that, at that time, DOD hadn't redesignated the company. But because of the relisting, the government opposed the show cause motion.

Judge Paul Friedman agreed, denying the show cause motion and ordering the parties to meet and discuss the case's next steps and report back before Nov. 5. The judge told the parties to address the "mootness" of the pending motions for judgment in light of the new decision, the need for supplemental briefing and a proposed schedule for supplemental briefing.