Hesai, U.S. security concerns and regulatory pressure amid Nvidia partnership
Chinese lidar maker Hesai Technology 2024 continued expanding its U.S. business, raising cybersecurity concerns. Critics argue that it could provide the government with a pathway to access sensitive data, while lawmakers are pursuing legislation to ban the use of Chinese-made lidar.
Chinese lidar maker Hesai Technology 2024 continued expanding its U.S. operations after being designated a Chinese military entity by the U.S. Department of Defense. The company has signed contracts expanding its U.S. activities, including a partnership with Nvidia.
Researchers and some critics are concerned that Hesai’s lidar technology could pose cybersecurity risks and serve as a “backdoor” through which the Chinese government could obtain sensitive information. Hesai’s chief executive countered that the sensors cannot store data.
Hesai has a record of suing over its blacklist designation but losing the case. This has affected the regulatory debate.
Lawmakers are pushing legislation to ban Chinese-made lidar from U.S. systems. If the bill passes, restrictions on its use could be imposed in government procurement and the private sector.
The controversy once again highlights that the supply chain and manufacturing origin of lidar equipment are subjects of national security discussions. Companies’ cooperation contracts with the United States and regulatory risks are drawing attention at the same time.
Sources: CNBC,CNBC Top News
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