Chinese LiDAR maker rejects report backing U.S. claims it supplies
China's military
[March 20, 2025] BANGKOK
(AP) — China's leading supplier of LiDAR technology has denied a report
saying it has links to the Chinese military, as the company awaits a
U.S. court's ruling on the U.S. government's decision to include it in a
Defense Department list of suppliers to the Chinese military .
Hesai is the industry’s global leader in sales of laser sensors known as
LiDAR and a major supplier to Chinese electric vehicle makers. Its
Nasdaq-traded shares surged last week after it reported it had reached
profitability. They fell about 10% on Tuesday after the stock research
group Blue Orca Capital issued its report, which also accused the
company of misleading investors.
“We are aware of the report published by short-seller Blue Orca
Capital,” Hesai said in an emailed statement. “Hesai is committed to
stringent standards of business ethics and regulatory compliance. We
strongly disagree with the allegations in the Blue Orca report and are
of the view that they are without merit.”
Hesai sued the U.S. government last year after was added to a Defense
Department list of companies considered to have Chinese military
connections. The company says it has no such links.
According to court documents, a hearing was scheduled for Thursday in
the District Court of the District of Columbia for Hesai’s case against
the Department of Defense.
LiDAR is short for “light detection and ranging.” It uses lasers in
remote sensing to measure distances and surfaces around a device,
supplementing information detected by cameras and other sensors. It's
used in autonomous driving and other applications such as consumer
robots and industrial automation.
Hesai is the main supplier of LiDAR to Chinese automakers including BYD.
It also was a supplier to Cruise, which General Motors GM bought in 2016
with high hopes of developing a profitable fleet of robotaxis. GM
retreated from that venture late last year, after investing billions,
saying it would develop partially automated driver-assist systems like
its Super Cruise, which allows drivers to take their hands off the
steering wheel.
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 Hesai also supplies Amazon's Zoox
robotaxi service, which is hoping to begin offering driverless rides
to the general public in Las Vegas at some point this year before
also launching in San Francisco.
In the transcript of a recent earnings call, Hesai's CEO David Li
said the U.S. government “continued to falsely accuse us of
associating with the Chinese military."
“We can state definitely that DOD has not accused Hesai of being
owned or controlled by any military bodies, selling products to any
military bodies or otherwise directly supporting any military
bodies,” he said. Instead it asserts that Hesai supports Chinese
“military-civil fusion.”
The Blue Orca report includes still images of tanks shown on the
Chinese national broadcaster CCTV or in other state-run media and at
industry exhibitions that appear to be equipped with Hesai LiDAR
units, with close-ups showing the brand name on the devices.
It also notes that U.S. President Donald Trump's comments describing
Chinese technology companies with ties to the military as a threat
to national security raise the risk that Hesai faces risks to its
business and investments in the U.S.
“Ultimately, we do not think that U.S. authorities will permit a
Chinese military company whose products are equipped on Chinese
military vehicles to take advantage of the privilege of American
capital markets,” it said.
Hesai reported a 14 million yuan ($1.9 million) profit last year,
reversing from a loss of 241 million yuan in 2023.
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