WASHINGTON D.C (VINnews)-U.S. officials are raising concerns about potential cyber risks posed by Chinese lidar manufacturer Hesai Technology, even as the company maintains commercial partnerships with major American tech firms including Nvidia.

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Hesai was added to the U.S. Department of Defense’s blacklist of Chinese military-linked entities in 2024. The designation prohibits the company from securing Pentagon contracts but does not ban commercial sales to U.S. autonomous vehicle platforms.

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Nvidia reported that its fiscal year 2026 automotive revenue rose 39% from the previous year, reflecting strong demand in the sector where Hesai’s lidar technology has been integrated by some partners.

David Li, presumably a company representative, pushed back against the Defense Department’s action. “In the DOD case, I don’t feel there is sufficient evidence, and it’s not logical,” he said.

The situation leaves commercial autonomy developers in a bind, forced to weigh the advantages of low-cost, scalable Chinese hardware against the growing likelihood of federal regulatory restrictions and security crackdowns.

Hesai has emerged as a leading supplier of lidar sensors used in self-driving cars and advanced driver-assistance systems. While the company has expanded its footprint in the U.S. market through partnerships, national security officials continue to express worries about potential vulnerabilities in critical infrastructure and data collection tied to Chinese firms.