CHINESE artificial intelligence (AI) startup SenseTime Groupsaid Saturday that it strongly opposed the U.S. government’s decision to add it to an investment blacklist over allegations, which the company said are unfounded and reflect a fundamental misunderstanding of its business.

This came after the U.S. Treasury Department on Friday announced new sanctions that included putting SenseTime on a list of Chinese military-industrial complex companies.

“We strongly oppose the designation and accusations that have been made in connection with it. The accusations are unfounded and reflect a fundamental misperception of our company,” SenseTime, which is expected to raise HK$5.99 billion (US$768.3 million) in an initial public offering (IPO) in Hong Kong, said in a statement.

SenseTime said it is an entrepreneurial company founded by AI scientists and practitioners with an aim to use technology to improve people’s lives.

Reuters quoted sources familiar with the situation as saying Saturday that SenseTime Group is considering whether it can proceed with its planned IPO after the U.S. sanctions.

The sources said that the company had not yet made a final decision on whether to go ahead with the listing. SenseTime missed the pricing date for the IPO on Friday after a media report that a U.S. blacklisting was imminent.

SenseTime’s addition to the U.S. blacklist would prohibit U.S.-based investors from buying its shares.

SenseTime had planned to sell 1.5 billion shares within a price range of HK$3.85 to HK$3.99 each in the IPO. It was due to set the final price and allocate shares to institutional investors Friday, according to the firm’s filings. (SD-Agencies)