The U.S. Defense Department has reinstated lidar manufacturer Hesai Group to its list of companies alleged to have connections with Beijing’s military, following a brief removal. The China-based firm, which specializes in lidar technology essential for self-driving cars and advanced driver-assistance systems, was originally placed on the list in January alongside several other companies.
In a court filing, the Justice Department revealed that the Pentagon had removed Hesai from the list but plans to relist the company based on updated information. Hesai had previously filed a lawsuit challenging its designation, asserting that “no Chinese governmental or military entity has sought to exert influence or control over the Hesai Group’s management, strategy, or research-and-development operation.” The company contended that it is predominantly owned by shareholders outside of China.
The Pentagon’s decision to relist Hesai, communicated to Congress through two letters, is expected to be officially published in the coming days. Being on the list serves as a warning to U.S. businesses about potential risks associated with partnerships with the company, though it does not impose immediate bans.
Hesai claims that its previous listing caused “serious reputational injury, a significant drop in stock price, and lost business opportunities,” prompting the firm to request a U.S. district court to compel the government to remove it from the list.
Concerns have been raised by some U.S. lawmakers regarding the use of autonomous vehicle technologies, including lidar and semiconductors, from Chinese companies, citing risks of data being collected and potentially shared with the Chinese government. In response, the Biden administration recently proposed measures that would effectively ban Chinese vehicles over concerns related to connected vehicle software and hardware.
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