Spotlight on lidar
Lidar stands for Light Detection and Ranging. It is a critical technology for a number of applications — from next-generation AV technology and automation to surveillance and unmanned military systems. Lidar sensors are also used to help upgrade infrastructure, modernize utilities, and enhance traffic and transit systems in cities across the world — including here in the United States.
Considered the ‘eyes’ of autonomous vehicles and surveillance systems, lidar uses lasers to map the environment. Lidar sensors capture and transmit an enormous amount of data — data that can produce real-time 3D maps within millimeters of accuracy and even determine the direction and speed of moving objects, including people.
Once a leader in lidar, the U.S. is losing ground. China is advancing quickly with subsidized technology flooding the U.S. market and Chinese lidar companies benefitting from U.S. investment.
The commercial lidar industry was founded in the U.S. Even though U.S. firms have led in lidar development and production to date, People’s Republic of China (PRC) aligned and supported companies are advancing quickly and unfairly.
Chinese lidar companies receive generous government support by way of subsidies, grants, and other benefits, and reports of theft of American intellectual property have run rampant. Several Chinese lidar companies, including Hesai, Innovusion, Livox, Leishen, and Robosense, are benefiting from U.S. investment and have received funding from U.S. venture capital firms. In fact, Hesai is already listed on the NASDAQ and Innovusion filed for an initial public offering in August of 2023.
“U.S. firms have led in lidar to date, but PRC firms are advancing with the support of PRC industrial policies and access to the U.S. market and technology.…using U.S. capital markets to secure financing, enter the U.S. market, negotiate partnerships, and acquire U.S. technology.” Congressional Research Service, August 2023 report.
If Chinese lidar companies continue to dominate the market, American and American-allied lidar companies may never recover — a stark reality that would put our national security at risk.
The AV space will continue to be a large driver of demand for lidar. If Chinese government-backed lidar companies continue to dominate orders from AV manufacturers, it could destroy the U.S. lidar market — leaving only Chinese lidar companies to fill orders and provide critical technology. Such a scenario would threaten our country’s national security in real and immediate ways.
Lidar collects vast troves of sensitive information and reliance on Chinese lidar exposes the U.S. to a host of national security threats.
CYBER ATTACKS: Lidar sensors are used to secure sensitive sites, operate AVs, run traffic signals, and move cargo at ports and aircrafts at airports. A cyber attack that shuts off lidar sensors or causes them to malfunction would be catastrophic.
DATA THEFT: Lidar servers are networked devices that share large amounts of data across networks that also access the internet. A lidar company with links to the Chinese government could program a sensor with malware during installation on a network or through a firmware update.
Chinese companies have an obligation to the Chinese government, which has substantial oversight and discretion over the conduct and operations of Chinese businesses.
Hesai’s IPO filing earlier this year stated “the PRC government has significant authority in regulating our operations and may influence or intervene in our operations at any time.” (F-1 SEC Filing, February 2, 2023).
MILITARY THREAT: Chinese lidar companies are linked closely to the Chinese government (PRC) and military (PLA) and collected data could be used to map U.S. infrastructure, conduct military or industrial espionage, and gain operational advantages in a military conflict.
Chinese lidar companies are already installing their technology on Chinese military vehicles and autonomous systems. Lidar technologies from Hesai, Robosense, Livox and Leishen are deployed on advanced warfighting vehicles and automated military systems produced by Chinese defense contractors — contractors identified on the U.S. Treasury’s Chinese-Military Industrial Complex (CMIC) Companies List and/or the Department of Commerce’s Entity List.
SURVEILLANCE: Data collected by Chinese lidar companies could be used to map U.S. infrastructure, providing another avenue in China’s on-going surveillance tactics. It wouldn’t be the first time the PRC deployed lidar to monitor, threaten, and oppress. There is evidence of Chinese lidar sensors being used for surveillance in the Xianjiang Uyghur Autonomous Region (XUAR), deployed on police vehicles and via drone as a way to oppress the Uyghur population. Security patrol robots are deployed at railway stations to monitor ID and location information of passengers.
“DJI was among eight Chinese companies added to a U.S. investment blacklist by the Treasury Department in December over sales of its drone equipment to police in Xinjiang, where U.S. officials said it has been used to surveil ethnic Uyghurs,” Washington Post Feb. 1, 2022.
Supporting American-made lidar means securing our country’s place as leaders in emerging science and technology while safeguarding against potential threats to our national security.
Without immediate action, America and our allies risk ceding yet another critical technology to China. Absent bold and swift moves by leaders in DC, the U.S. lidar industry is headed the way of:
Drones — now dominated by DJI, with more than 70% of the global drone market
Security cameras — now dominated by Hikvision, with more than 70% of the global video-surveillance market
5G — the U.S. government is now spending billions of dollars to jump start 5G alternatives due to Huawei
In each case, we acted too late and only after the U.S. industry was decimated. The U.S. needs to maintain, advance and ensure long-time leadership in science and technology, specifically one as important to our future as lidar. The federal government must act to protect America’s commercial and national security interests.