Elias Sköld, Nico Mastrangelo, Prague Security Studies Institute / 29 Jul 2025

PSSI’s latest Perspective examines the rising risks linked to Hesai Technology, a Shanghai-based lidar manufacturer recently designated by the U.S. Department of Defense as a Chinese Military Company. Despite being publicly listed on NASDAQ and dominating over a third of the global lidar market, Hesai is facing mounting scrutiny over its alleged ties to China’s military-industrial complex and surveillance apparatus — claims which Hesai strenuously deny.

Nevertheless, open-source evidence appears to show Hesai sensors on Chinese military vehicles, links to sanctioned PLA-affiliated contractors, and operations within a Military-Civil Fusion zone, all with key investors connected to state institutions. While Hesai asserts that its lidar sensors are unsuitable for surveillance purposes, concerns about their application in “passenger tracking” technologies remain unresolved, and are exacerbated by their partnerships with organizations directly involved in facial recognition and surveillance. Given its publicly traded status, this highly concerning – and growing — body of evidence suggests that investors in Hesai may be unwittingly financing capabilities that run counter to our national interests in the U.S. and Europe.