Hesai Technology, the Shanghai-based lidar maker blacklisted by the Pentagon in 2024 as a Chinese military entity, continues to deepen its ties with American industry. Its sensors now feature in Nvidia’s autonomous vehicle platform, Amazon’s Zoox robotaxis, and security systems at New York’s JFK Airport. The Pentagon designation bars Hesai from U.S. military contracts, but does not stop commercial sales — and critics argue that gap creates a serious vulnerability.

Security experts warn that Chinese-made lidar could serve as a backdoor for Beijing to access sensitive data or disrupt critical infrastructure. Craig Singleton of the Foundation for Defense of Democracies says the sensors’ precise 3D mapping could be weaponized if a hostile power wanted to target U.S. utilities or airports. Duke University researchers have also demonstrated that lidar can be spoofed or infected with malware during manufacturing, potentially creating phantom objects or hiding real obstacles from autonomous vehicles.

Hesai CEO David Li dismisses the allegations as baseless, noting the sensors lack memory to store data and that partners control all information collected. He points to open-source firmware and independent safety certifications as proof of transparency. But lawmakers like Rep. John Moolenaar are pushing legislation to phase out Chinese lidar, citing past cases where blacklisted firms like Huawei and DJI were later forced out of U.S. networks. With Hesai now commanding a third of the global automotive lidar market — and prices dropping below $200 per unit — the debate over security versus cost is only intensifying.

Source: CNBC