Chinese lidar maker Hesai Group sues U.S. government over allegations

China-based Hesai Group has filed a lawsuit against the U. S. government for putting it on a list of companies which have been found to be working with Chinese military. The lawsuit was filed after the U. S. Department of Defense added Hesai to its list of firms in January, simultaneously with several other businesses, pointing out the concerns about their alleged connections to the Chinese military.

Background of the lawsuit

The leading manufacturing company of lidar light sensors that are used in the self-driving vehicles and driver-assistance systems, Hesai Group, questions the decision and says that the management and operations of the company are not influenced by the Chinese governmental or military entities. The company asserts that it is primarily owned by non-Chinese shareholders and thus is focused on the commercial and civilian use of its technology.

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Consequences of the listing

The fact of being on the 1260H list has caused significant reputational damage for Hesai Group, which has in turn led to a steep fall in its stock price as well as the loss of possible business opportunities. Although the inclusion on the list does not present the immediate imposition of sanctions, it is a warning to the U.S. entities about their dealings with the listed companies.

Legal action and requests

In its lawsuit brought on Monday, Hesai Group insists that it was not given any warning or explanation, or even a chance to defend itself before being put on the list. The company demands that the US district court order the government to get its name out of the list, referring to the unequal treatment and the absence of due process.

Response from the government

The U. S. Department of Defense has not made any remarks on the proceeding of the lawsuit. On the other hand, Hesai Group insists that the government has not given any serious answers to its requests for removal of the group from the list or does not try to solve the problem outside the courtroom.

Concerns raised by lawmakers

Some U. S. lawmakers have indicated the doubts on the use of the advanced technology, whose components are made by Chinese firms, including lidar, radar, and semiconductors. They emphasize the possible dangers of data collection and possible sharing of it with China by citing the national security concerns.

U.S. Transportation Secretary Pete Buttigieg previously voiced concerns about the national security implications of such technologies. He stressed the need for a better understanding of the ownership structure of the companies that provide components for the transportation systems to solve the problems effectively.

As the legal battle unfolds, the outcome will likely influence the landscape of technology trade relations between the U.S. and China, with broader implications for the global tech industry.

(Inputs from Reuters)