A prominent Chinese technology company, Hesai Technology, known for manufacturing LiDAR road sensing equipment for self-driving vehicles, is gearing up to take legal action against the U.S. government. This move comes in response to the company’s inclusion in a list compiled by the Pentagon, linking it to alleged ties with the Chinese military.
Hesai’s core product, LiDAR technology, finds applications in passenger and commercial vehicles, autonomous driving systems, and delivery robots. Despite being a Nasdaq-listed entity, the company was among the 17 businesses recently added to the U.S. Department of Defense’s catalog of “Chinese military companies.”
The list, which also features entities like Megvii and IDG Capital, has faced backlash for its lack of explanation regarding the inclusion of these companies. Hesai’s CEO, Yifan “David” Li, expressed the company’s intention to file a lawsuit, condemning the move as “unjust, capricious, and meritless.”
In a statement, Li emphasized that Hesai is not a military company and its products are exclusively designed for civilian use. The company accuses its critics of orchestrating a smear campaign to gain unfair commercial advantages.
Hesai previously clarified that its LiDARs were not created to meet military specifications, a sentiment echoed by the U.S. Department of Commerce, which deemed the products unsuitable for any military applications. Despite this, the company’s stock has plummeted from approximately $22 to $4 in the past year.
The Biden administration’s continuity of tariffs and restrictions on China’s access to advanced U.S. technology has further strained relations. The Defense Department updates its list regularly to counter perceived links between Chinese military entities and civilian companies.
China’s foreign and commerce ministries have protested this expansion of the list, reflecting the ongoing tension in U.S.-China relations. In a parallel scenario in 2021, Xiaomi Corp., a Chinese smartphone maker, successfully got removed from the blacklist after suing the U.S. government and denying any links with China’s People’s Liberation Army.