Chinese lidar manufacturer Hesai sues US Department of Defense over inclusion in a list for alleged ties to China's military
Chinese lidar manufacturer Hesai Technology Co officially filed a lawsuit against the US Department of Defense on Monday over being added to a list of companies for allegedly working with the Chinese military, the Global Times learned on Tuesday.
In the complaint filed with the Washington Federal Court, Hesai stated that its inclusion on the so-called 1260H list had led to "damaged reputation, substantial stock price decline, and missed business opportunities." Hesai, which is listed on the Nasdaq, urged the court to order the US Department of Defense to remove it from the list or declare the list unconstitutional.
Hesai is known for its leading radar products, which are primarily used in advanced driver-assistance systems (ADAS) for both passenger and commercial vehicles. It was included on the list by the US Department of Defense in January, along with over a dozen other Chinese companies including Yangtze Memory Technologies Co.
"Hesai lidars are designed for civilian use only. We have no affiliation with the Chinese military and remain committed to correcting the record and protecting our reputation," a spokesperson for Hesai told the Global Times on Tuesday.
The spokesperson added that the US government has yet to offer any meaningful response to requests from the Chinese company or made any attempts to resolve the issue outside of court.
While the list itself doesn't impose specific sanctions at present, according to the US media, the associated legislation will prevent the US Department of Defense from engaging in contracts with any of the listed companies for the foreseeable future. Observers said this also poses substantial reputational risks for Chinese companies and could potentially compel the US Treasury Department to levy sanctions against the firms.
Foreign Ministry spokesperson Wang Wenbin voiced strong opposition to the US Department of Defense's update of the "Chinese Military Company List" in February.
"China firmly opposes the US overstretching the concept of national security, setting up all kinds of discriminatory lists, going after Chinese companies and disrupting normal economic and trade cooperation between China and the US," he said.
A spokesperson for the Ministry of Commerce said on May 10 that China would take all the necessary measures to defend the legtimate rights of Chinese companies in response to US abuse of export control measures.
China urged the US to immediately cease the relevant incorrect practice, which is disrupting the security and stability of global industrial and supply chains.