China-based Hesai Group has filed a lawsuit against the U.S. government for its decision to add the company, known for its lidar light sensors used in self-driving cars and driver-assistance systems, to a list of firms purportedly collaborating with Beijing’s military.
The U.S. Department of Defense included Hesai in this list in January, alongside more than a dozen other companies. While inclusion on the list does not immediately impose bans, it serves as a cautionary measure to U.S. entities and companies regarding the potential risks of engaging in business with these entities.
In response, Hesai stated in the lawsuit 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,” emphasizing that the majority of its shareholders are based outside China.
The listing on the so-called 1260H list has reportedly led to “serious reputational injury, a significant drop in stock price, and lost business opportunities” for Hesai. The company is seeking a court order from a U.S. district court to have its name removed from the list.
The U.S. defense department has not provided immediate comment on the matter.
Hesai, listed in New York since early last year, criticized the department for not providing any prior warning, explanation, or opportunity for defense before its inclusion on the list. The company emphasized that its products are designed and manufactured solely for commercial and civilian purposes.
The lawsuit comes amidst concerns raised by some U.S. lawmakers regarding the use of autonomous vehicle (AV) technology, including lidar, radar, and semiconductors, when sourced from Chinese firms. These concerns cite potential risks of data collection on American citizens that could be shared with China.
U.S. Transportation Secretary Pete Buttigieg expressed national security concerns about such technologies last year, highlighting the need for a better understanding of “the true ownership of the different enterprises that are supplying different elements of our transportation systems.”
