July 11 (Reuters) - A U.S. court on Friday ruled against

China-based Hesai Group in the lidar manufacturer's

lawsuit against the U.S. government for adding it to a blacklist

of companies allegedly working with Beijing's military.

The U.S. District Court for the District of Columbia ruled

that the Defense Department's finding that Hesai contributes "to

the Chinese defense 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.

Hesai, whose lidar sensors help self-driving cars and

driver-assistance systems gain a three-dimensional map of the

road, was added to the list early last year, along with over a

dozen other companies.

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 also said that an entity contributes "to the

Chinese defense 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 defense department and Hesai did not respond to requests

for comment.