US Lawmakers Express Concerns Over China’s LiDAR Dominance, Cite National Security Threats

Washington, D.C., December 2, 2023 – In a bipartisan effort, a group of 20 House lawmakers is urging the Biden administration to investigate Chinese Light Detection and Ranging (LiDAR) technology companies, expressing concerns over potential threats to U.S. national security. LiDAR, a critical technology for autonomous systems and robotics, currently operates outside U.S. export controls.

Led by House Select Committee on the Chinese Communist Party Chairman Rep. Mike Gallagher (R-Wis.) and ranking member Rep. Raja Krishnamoorthi (D-Ill.), the lawmakers penned a letter on November 28 addressed to Commerce Secretary Gina Raimondo, Defense Secretary Lloyd Austin, and Treasury Secretary Janet Yellen.

In their letter, the lawmakers highlighted the absence of U.S. export controls or government procurement restrictions on LiDAR technology, emphasizing its dual-use nature in both civilian and military applications. They raised concerns about the rapid expansion of Chinese LiDAR businesses, asserting potential threats to U.S. military capabilities, autonomous systems, robotics, and critical infrastructures.

The lawmakers stressed the importance of ensuring that U.S. technology used in foreign LiDAR systems is not exploited by adversaries to develop autonomous military vehicles and weapons. They urgently called for action to prevent LiDAR produced by state-backed entities from foreign adversary countries from infiltrating the U.S. market or gaining access to U.S. capital markets and critical infrastructure systems.

Citing China’s strategic focus on LiDAR technology, the lawmakers pointed to the support provided by the Chinese Communist Party (CCP) through industrial policies, including tariffs and subsidies. They highlighted the example of Hesai Technology, a Chinese LiDAR firm, now holding a substantial 47 percent of the global market share.

Of particular concern is the lack of security requirements for the procurement of LiDAR technology by the U.S. government, raising the possibility that PRC-made LiDAR may already be present in U.S. defense systems without the military’s awareness.

The lawmakers called on the Commerce, Treasury, and Defense departments to investigate the Chinese LiDAR industry, identify entities for inclusion in restricted lists, and assess specific U.S. technologies that should be subject to export controls to China.

China LiDAR Threats

In recent years, China has designated LiDAR technology as a strategic emerging industry, investing heavily in its development. The global automotive LiDAR market is projected to grow from $317 million in 2022 to nearly $4.5 billion in 2028.

A Congressional Research Service report from August outlined preferential treatment for China’s LiDAR firms under CCP industrial policies, including subsidies and market protections. It highlighted the rapid advancement of PRC firms in the LiDAR market, with concerns over foreign takeover of the U.S. LiDAR market.

China’s collaboration with U.S. LiDAR research and its use of U.S. capital markets to secure financing and acquire technology were also noted in the report. The lawmakers emphasized the risk posed by China’s growing dominance in LiDAR technology and called for immediate action to safeguard U.S. national security interests.