Chinese lidar manufacturer Hesai, which is on the blacklist, is fueling self-driving initiatives in the US.

      A lidar manufacturer, which the Pentagon associates with a Chinese military entity, is quietly supplying technology for America’s robotaxis, trucks, and even an airport. Nvidia is among its partners.

      Hesai produces many of the sensors utilized by self-driving vehicles for vision. The Shanghai-based company is also listed on a US Department of Defense blacklist of Chinese military firms, according to CNBC. This designation prevents Pentagon contracts but does not hinder American companies from employing the sensors, and Hesai’s presence in the US continues to expand.

      Blacklisted, yet ubiquitous

      Hesai commands roughly one-third of the global lidar market for automobiles. Its sensors are integrated into Amazon’s Zoox robotaxis, the trucking businesses Waabi and Kodiak, and the delivery service Nuro. They also monitor the gates at New York’s JFK airport. An enhanced partnership revealed at January's CES made Hesai a contender on Nvidia’s self-driving platform as well.

      The price explains its extensive reach. Hesai claims it has reduced the cost of a unit from over $10,000 to less than $200. Critics argue this pricing is only feasible due to subsidies from the Chinese government, a claim Hesai disputes.

      The backdoor concern

      Security experts caution that the sensors could be compromised by attackers. A lab at Duke University demonstrated how malware could enable a lidar to perceive a nonexistent person, potentially obscuring a real one. In 2024, a flawed Hesai firmware update triggered a leap-year bug, causing all of its sensors to freeze simultaneously.

      Hesai’s CEO, David Li, dismisses these security concerns as fictional. He asserts that the sensors do not store data and are incapable of sending information back to the company. He also states that the leap-year issue was a coding error fixed within a day, and insists that Beijing does not hold any interest in the firm.

      Why it’s significant

      This situation parallels cases involving Huawei, DJI, and router manufacturer TP-Link, all Chinese companies identified on the same Pentagon list prior to the US government's efforts to sever ties with them. US lawmakers are now advocating for the phase-out of Chinese lidar technology and banning Chinese vehicles from American roadways.

      Europe finds itself in a similar predicament, as its automakers depend on the affordable Chinese sensors that dominate the autonomous driving sector. Meanwhile, Brussels and Washington continue to tighten restrictions on Chinese technology and blacklisted components. In this competitive market, cost-effective hardware is prevailing first. The onset of the Nvidia-powered robotaxi boom is here, but whether trust will develop alongside it remains an open question.