What it does The court held that Hesai’s listing as a “Chinese military company” implicated a protected liberty interest under the stigma-plus doctrine because publication caused reputational harm and federal law automatically excluded listed companies from specified government contracts and forms of financial assistance. The Secretary’s October 2024 redesignation provided neither the required pre-deprivation notice nor an opportunity to rebut the unclassified record. National-security interests did not justify postponing process absent a particularized showing, and the procedural violation was not harmless. The court did not reach Hesai’s Administrative Procedure Act claims and remanded for further proceedings without vacating the 2024 designation.

Who it affects The ruling directly affects Hesai Technology Co., Ltd., Hesai, Inc., the Department of Defense, and future Section 1260H designation proceedings. It also concerns federal agencies and listed companies subject to statutory procurement and funding restrictions.

Why it matters The opinion constitutionalizes procedural safeguards for Section 1260H designations, requiring meaningful pre-finalization notice and response opportunities unless the government specifically justifies postponement. A later list including Hesai did not moot the challenge because the earlier designation could retain reputational effects and the process failure could recur.

Key dates and numbers

• January 31, 2024: initial designation.
• October 15, 2024: rescission and redesignation.
• June 10, 2026: new Section 1260H list again included Hesai.
• August 18, 2026: opinion decided; No. 25-5256.
• Section 1260H: annual Chinese military company listing authority.