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Source: Huanqiu.com

[Global Network Report] According to a report by the Financial Times on the 12th, citing sources, the Pentagon has decided to remove Hesai Technology, a Chinese lidar manufacturer, from the "blacklist" of Chinese military-related companies after the US military determined that the Chinese company did not meet the legal criteria for inclusion in the "blacklist". Lidar is reportedly a key component for self-driving cars.

The Financial Times said that the US Department of Defense put Hesai Technology on the "blacklist" in January this year. The company's removal from the "blacklist" was an "embarrassing reversal" for the US Department of Defense.

According to the Financial Times, the Pentagon was sued by Hesai Technology in May this year. The picture is the accompanying picture of the report

According to reports, the U.S. Congress passed legislation in 2021 requiring the Pentagon to compile a so-called "list of companies affiliated with the Chinese military." The bill aims to strengthen scrutiny of relevant Chinese companies operating in the United States. In May this year, Hesai Technology, headquartered in Shanghai and listed on Nasdaq, formally sued the U.S. Department of Defense, demanding that it be removed from the so-called list.

The report said that people familiar with the Pentagon's latest decision said that U.S. government lawyers were concerned that the reasons for putting Hesai Technology on the "blacklist" might not withstand legal scrutiny based on the criteria outlined in the 2021 legislation.

Regarding the above report, the Financial Times said that the Pentagon said it could not comment on it because the lawsuit is still ongoing. The White House also did not comment. Hesai Technology said that being included in the "blacklist" was a "mistake". The Chinese Embassy in the United States said that it is happy to see the United States correct its discriminatory practices and provide a fair, just and non-discriminatory business environment for Chinese companies.

It is worth noting that this is not the first time that the Pentagon has been in an awkward position over the issue of listing Chinese companies. According to Bloomberg and other media reports, on May 11, 2021, the US Department of Defense and China's Xiaomi Corporation once again issued a joint status report on the "military-related companies" list lawsuit. The US government admitted that there were procedural justice issues in including Xiaomi on the list and was willing to reconcile with Xiaomi and remove the company from the "blacklist." Commentators said that this marked a "remarkable reversal" of the Biden administration's final crackdown on China during Trump's term.

Regarding the U.S. Department of Defense's inclusion of Chinese companies in the so-called "List of Companies Associated with the Chinese Military," Wang Wenbin, then spokesperson for the Chinese Ministry of Foreign Affairs, said in February this year that we firmly oppose the U.S. generalizing the concept of national security, drawing up discriminatory lists of various names, unreasonably suppressing Chinese companies, and undermining normal Sino-U.S. economic and trade cooperation. The U.S. practice violates the market competition principles and international economic and trade rules that it has always advocated, undermines the confidence of foreign companies to invest and operate in the United States, damages the interests of American companies and investors, and will eventually backfire on itself.

"In fact, the US government is the main driving force behind the military-civilian integration policy. The US military-civilian integration policy can be traced back to before World War I. The US Department of Defense set up offices in technology centers such as Silicon Valley to guide high-tech companies to accelerate the 'militarization' and 'combat application' of technology. Many large American multinational companies are 'military-civilian integration entities', and their business scope and product types span the military and civilian fields." Wang Wenbin said, "We urge the US to immediately correct the above discriminatory practices and provide a fair, just and non-discriminatory environment for Chinese companies to operate. China will continue to firmly safeguard the legitimate rights and interests of its companies."