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China-based lidar manufacturer appeals to US court over DoD linking firm to military

Global Times

By Global Times Published: Jul 15, 2025 05:38 PM

China-based lidar manufacturer Hesai Group appealed on Monday to the US Court of Appeals to challenge the decision of the US District Court for the District of Columbia, which upheld the US Department of Defense's (DoD) decision to add the firm to a list of companies working with Chinese military, Hesai said in a press release on Tuesday.

US District Judge Paul Friedman in Washington ruled on Friday that the Defense Department's finding that Hesai contributes to the Chinese defense industrial base is supported by substantial evidence reflecting lidar's military application, national security concerns around Chinese lidar makers and Hesai's cooperation with Chinese agencies, Reuters reported.

"We are deeply disappointed by the Court's ruling and respectfully disagree with its decision. We believe the DoD's designation lacks both factual and legal bases. Critically, the Court acknowledged that the DoD found no evidence that Hesai's products have been used for military purposes, nor any evidence of a direct or indirect connection between Hesai and the Chinese military — fundamental facts Hesai has maintained all along," the press release said.

This ruling establishes a concerning precedent — allowing DoD unlimited discretion to blacklist companies simply because they participate in China's civilian economy — including Chinese subsidiaries of US companies that lack any military ties. DoD's reasoning stigmatizes normal commercial activities, such as operating in local industrial districts or developing widely used commercial technologies, and equates them with national security threats. This approach harms global technological collaboration, undermines principles of fairness and due process and discriminately targets law-abiding businesses that drive innovation across borders, a source familiar with the matter told the Global Times.

The company has formally filed a Notice of Appeal to the US Court of Appeals challenging the District Court's decision, and will vigorously pursue all legal avenues to protect our reputation and seek fair treatment, read the press release.

Hesai has never developed, supplied or certified products for military use, as its products are solely for civilian and commercial uses. The company will continue to defend its integrity and pursue appropriate legal remedies. At the same time, Hesai remains focused on delivering cutting-edge lidar solutions to its global customers and maintaining its unwavering commitment to transparency and good corporate governance as a Nasdaq-listed company, according to a notice released by the company on Monday.

Hesai's lidar products enable a broad spectrum of applications, including passenger and commercial vehicles, as well as autonomous driving vehicles and robotics and other non-automotive applications such as last-mile delivery robots, according to the company.

The company was included on the list by the DoD in January 2024, and it initiated legal action against the Pentagon in May. In August 2024, the Pentagon decided to remove Hesai from its blacklist of Chinese military-affiliated companies after determining that it did not meet the legal criteria for inclusion, according to sources cited by the Financial Times.

However, the DoD in October re-added the company to the "Chinese Military Companies" blacklist, and the company said that it will continue the legal process against the US defense department.