BANGKOK (AP) – China’s preeminent provider of LiDAR technology, Hesai Technology, has refuted claims linking the company to the Chinese military. This development comes as Hesai awaits a ruling from a U.S. court regarding the U.S. government's decision to include the company on a Defense Department list of suppliers associated with military interests. The company has firmly stated that it has no connections to the Chinese military.
Hesai is recognized as a global leader in the sales of LiDAR (Light Detection and Ranging) sensors, which are vital for autonomous driving and various applications, from consumer robots to industrial automation. Recently, its shares on the Nasdaq surged following the announcement of the company’s profitability. However, the stock price experienced a significant decline of approximately 10% after the stock research firm Blue Orca Capital published a report accusing Hesai of misleading investors.
In response to the allegations, Hesai emphasized its commitment to high standards of business ethics and regulatory compliance. In an emailed statement, the company expressed strong disagreement with the claims made by Blue Orca, asserting that the allegations are unfounded and without merit. Last year, Hesai initiated a legal battle against the U.S. government after being listed as a company with purported Chinese military ties, insisting that it operates independently of any military connections.
Details from court documents reveal that a hearing for Hesai’s case against the Department of Defense is scheduled for Thursday at the District Court of the District of Columbia. The legal proceedings are particularly crucial given the current geopolitical climate and heightened scrutiny of Chinese companies operating in the U.S. market.
The technology powering LiDAR relies on laser-based remote sensing to assess distances and surrounding surfaces, effectively enhancing information gathered by cameras and other sensors. As the primary supplier of LiDAR systems, Hesai provides technology to major Chinese automotive manufacturers, such as BYD, and has previously collaborated with Cruise, a subsidiary of General Motors. Despite hopes for a lucrative market in autonomous taxi services, GM scaled back its ambitions for Cruise late last year after pouring substantial investment into the venture.
Additionally, Hesai is involved with Amazon’s Zoox robotaxi service, which aims to launch driverless rides for the public in Las Vegas before expanding to San Francisco later this year. In a recent earnings call, CEO David Li stated that the U.S. government is “continuing to falsely accuse” the company of associations with the Chinese military. He clarified that while the Department of Defense has not labeled Hesai as owned or controlled by military entities, it has raised concerns about the company’s involvement in what it describes as Chinese “military-civil fusion.”
The Blue Orca report took a critical stance, presenting photographs from state-run Chinese media and industry exhibitions that show tanks equipped with Hesai LiDAR units, explicitly displaying the company's branding. Furthermore, the report referenced former U.S. President Donald Trump’s assertions that technology firms in China with military affiliations pose a national security threat, highlighting potential risks to Hesai’s business operations and investments in the United States.
Ultimately, Blue Orca expressed skepticism regarding the likelihood of U.S. authorities allowing a Chinese military-associated company to engage in American capital markets, particularly with products integrated into Chinese military vehicles. Meanwhile, Hesai reported a profit of 14 million yuan ($1.9 million) last year, marking a significant recovery from a prior substantial loss of 241 million yuan in 2023.
