Pentagon's Lidar Concerns: Hesai Group Under Scrutiny Again

The U.S. Defense Department briefly removed, then immediately relisted, lidar maker Hesai Group from a list of entities allegedly linked to Beijing's military. Hesai contested the designation, asserting independence from Chinese governmental influence. The addition significantly affected Hesai's reputation and business, prompting legal action.

The U.S. Defense Department has once again included lidar manufacturer Hesai Group in a list of companies allegedly affiliated with China's military, just after briefly removing it. This decision, disclosed in a court filing and letters to Congress, hinges on new information, according to the Pentagon.

In May, Hesai challenged its inclusion, asserting no Chinese governmental or military influence over its operations, and highlighting its majority ownership by non-Chinese shareholders. Despite this, the Justice Department confirmed plans to relist Hesai based on current data.

Though listing doesn't enforce bans, it signals caution for U.S. entities dealing with these firms. Hesai reported reputational harm and a declining stock price, seeking judicial intervention for removal. Concerns persist about Chinese-made AV technologies and potential data security risks.

(With inputs from agencies.)