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.

The company planned to challenge the Pentagon's decision in court, he told the newspaper. The U.S. Defense department removed Hesai from the list of companies allegedly working with Beijing's military,

The moves have hit China’s tech sector, giving new impetus to Chinese leader Xi Jinping’s push for technological self-reliance. While inclusion on the defence department blacklist does not stop Hesai from selling products in the US,