New Export Controls Over Lidar Tech May Only Hurt US Firms, Think Tank Says

The U.S. shouldn’t rush to impose new export controls on sensitive lidar technology, experts said, mostly because American firms may not have chokepoints over lidar and the restrictions may hurt U.S. export revenue.

A commentary published this month by the Center for Strategic and International Studies urges the U.S. to “use export restrictions lightly” for lidar, a light detection and ranging dual-use technology that uses lasers to calculate the position, size and velocity of surrounding objects. Unlike other similar technologies, CSIS said it’s “difficult to claim” the U.S. has critical chokepoints over the lidar supply chain because some Chinese products are “superior in both quality and price.”

Although lidar was first developed in the U.S., the think tank said Chinese technology companies have “imperiled the long-term viability of the U.S. lidar sector.” It pointed to Hesai, the largest Chinese lidar company by sales, which has captured more than 46% of global market share and 67% of the market for autonomous vehicles, which use lidar for driverless functions.

“U.S. export controls could thus have a limited effect on certain Chinese lidar capabilities,” CSIS said, “while narrowing the market for U.S. companies.”

The think tank also said the Commerce Department and the End-User Review Committee -- the interagency group that makes decisions on Entity List additions -- should study how foreign lidar may allow foreign governments to access 3D maps of U.S. critical infrastructure.

CSIS noted that Hesai has said its products are “closed systems” and can’t transfer data, but the company also reportedly has ties to the Chinese military as well as China Electronics Technology Group Corporation and the Harbin Institute, which are both on the Entity List. CSIS said Hesai has denied ties to China’s military.

Still, CSIS said Beijing has made it known that it views lidar as an important technology. The country last month announced new export controls related to certain lidar systems (see 2312210020). “The growth of foreign lidar companies, even if driven by good faith competition, could potentially imperil the longevity of U.S. firms,” CSIS said.

Although the think tank urged caution around new export controls, it said the U.S. may want to pursue other economic security tools to address China’s growing lidar industry, such as outbound investment restrictions. It said lawmakers have “demonstrated some enthusiasm” for covering lidar under the outbound investment rules being drafted by the Treasury Department. The House Select Committee on China in November urged the Biden administration to investigate all Chinese lidar technology companies to determine whether they should be placed on the Entity List or made subject to U.S. investment restrictions (see 2311290044).

If the U.S. determines lidar “does pose a national security threat,” it should “consider expanding the scope of an outbound investment regime to include lidar technologies,” CSIS said.

But it also stressed that protectionist trade tools “are only part of the equation,” adding that investments in domestic lidar innovation “will better enable the United States to map the geostrategic future.”