Reuters: Hesai's lawsuit against the U.S. Department of Defense's "military-industrial enterprise blacklist" case loses, court supports Pentagon's decision
Reuters reported on July 11, the U.S. District Court for the District of Columbia ruled that Chinese LiDAR manufacturer Hesai Technology (Hesai) lost its lawsuit against the U.S. Department of Defense's "military-industrial enterprise blacklist," and the court found that the Pentagon's decision to place Hesai on the blacklist was "supported by substantial evidence," including its product's potential for military applications and cooperation with Chinese institutions.
The U.S. court ruled that Hesai Group's lawsuit against the U.S. government's listing of "Chinese military-industrial enterprises" on the blacklist was unsuccessful, and the court supported the Department of Defense's conclusion that the company contributed to the "Chinese defense industry base." The ruling pointed out that the military application characteristics of LiDAR, security concerns about Chinese LiDAR manufacturers, and Hesai's cooperation with Chinese institutions constitute key evidence.
Hesai, as the world's largest automotive LiDAR manufacturer, holds a 40% share of the global automotive LiDAR market, and its products are used in the autonomous driving systems of automakers such as Li Auto, Xiaomi, and Great Wall. After being placed on the 1260H blacklist by the U.S. Department of Defense in January last year, its stock price plummeted by 31% in a single day, and its market value was halved.
The company had filed a lawsuit in May 2024, claiming that being listed on the blacklist caused "reputational damage, stock price decline, and loss of business opportunities," emphasizing that its products were "strictly civilian" and had no military connections; however, the court's judgment clearly stated that if an entity's technology has "substantial military applications," even if the product is only used in the commercial field, it still meets the blacklist criteria.
Previously, the U.S. Department of Defense identified Hesai as involved in military affairs based on its participation in the formulation of Chinese industry standards, receiving the "Small Giant" award from the Ministry of Industry and Information Technology, and policy disclosures. Hesai refuted these reasons as "far-fetched," comparing it to "accusing American car manufacturers of being connected to the Department of Transportation as being involved in military affairs."
This loss is a major blow to Hesai. Its CEO Li Yifan once said that the blacklist made the company's global expansion "increasingly challenging."
Original: https://www.toutiao.com/article/1837418410403840/
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