A U.S. federal court on Friday upheld the Department of Defense’s decision to blacklist Chinese lidar manufacturer Hesai Group, ruling that the company’s technology poses national security risks due to its potential military applications.
The U.S. District Court for the District of Columbia determined that there was substantial evidence supporting the Defense Department’s assessment that Hesai contributes to China’s defense industrial base.
The court cited lidar’s dual-use nature — applicable to both civilian and military systems — and Hesai’s cooperation with Chinese agencies as key factors behind the decision.
Hesai, which produces lidar sensors for autonomous vehicles and driver-assistance systems, was added to the blacklist in early 2023 alongside several other Chinese firms.
The company contested the designation, stating it has no ties to the Chinese military and that its products are intended solely for commercial use.
However, the court clarified that a company may be considered part of the Chinese defense industrial base if it manufactures technology with significant military potential, regardless of direct involvement with the armed forces or whether the products are used for civilian purposes.