- Hesai, which makes LiDAR components for automated vehicles, was placed on the so-called 1260H list by the U.S. government for alleged ties to the Chinese military.
- Although that does not carry direct penalties, the supplier claims that it has suffered reputational injuries.
- Now, Hesai is suing the U.S. government, demanding that a Washington court remove it from 1260H, or declare the list unconstitutional.
Hesai, a Shanghai-based supplier of LiDAR components for autonomous vehicles, has sued the U.S. government for adding it to a greylist of companies that have allegedly assisted the Chinese military.
Although there are no penalties associated with inclusion on the 1260H list, Hesai claims that it has suffered “reputational injury, a significant drop in stock price, and lost business opportunities,” according to a complaint if filed in Washington federal court on Monday.
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The LiDAR supplier that is listed on Nasdaq insists that it only designs products for commercial and civilian uses, reports Bloomberg. “No Chinese governmental or military entity has sought to exert influence or control over the Hesai Group’s management, strategy, or research and development operations,” it claimed.
The company says that inclusion on 1260H has disrupted its plans to build a production facility in the U.S., discussions for which were at an advanced stage before the government’s decision put them on hold.
Inclusion on the greylist carries no sanctions or direct penalties, though it is expected to restrict some defense contracts, and may discourage American companies from partnering with listed companies. Hesai is one of over a dozen businesses that have been added to 1260H, including Huawei Technologies Co. and Semiconductor Manufacturing International Corp.
Smartphone manufacturer Xiaomi was also once included on the list, but succeeded in forcing the government to remove it after winning a legal battle in U.S. court. In its suit, Hesai is demanding that the Department of Defense explain why it was included on 1260H, and has urged the court to remove it from the list, or to declare it unconstitutional.
