August 14, 2023
U.S.-China Competition in Emerging Technologies: LiDAR
The governments of the United States and the People’s
for example, plans to use LiDAR at 86 traffic intersections
Republic of China (PRC or China) have both identified
in an effort to improve traffic management and safety.
strategic and emerging technologies as a key element of
Military: U.S. and PRC forces are among the militaries
economic competitiveness and national defense. Efforts to
using LiDAR to support autonomous navigation capabilities
lead in such technologies are a core aspect of U.S.-China
for uncrewed ground and aerial vehicles (UxV). LiDAR’s
strategic competition. Some emerging technologies have
precision and speed enable military-specific use. UxV
both civilian and military uses. Among these technologies
equipped with LiDAR could be used to conduct battle
is Light Detection and Ranging (LiDAR), a remote sensing
damage assessment—an estimate of the physical and
technology used in automotive, agriculture, weather,
functional damage produced by an attack—removing the
manufacturing, and other systems. The LiDAR market and
need for military personnel to be physically present and
its uses are developing quickly. U.S. firms have led in
exposed on the battlefield. LiDAR-equipped UxV could be
LiDAR to date, but PRC firms are advancing with the
used to survey structural damage after natural disasters and
support of PRC industrial policies and access to the U.S.
to collect environmental data in remote or dangerous
market and technology. Some PRC firms have used
locations. The U.S. military has explored using LiDAR to
questionable practices to obtain U.S. LiDAR intellectual
identify and determine the depth of littoral sea mines and to
property (IP).
conduct atmospheric monitoring to predict laser weapons’
LiDAR Technology
effectiveness. The U.S. Army says potential uses include
“platform target identification, aim point selection, range
LiDAR is a remote sensing method that uses pulsed laser light to
measure the distance, speed, and/or altitude of physical objects to
instrumentation support, weapon defenses, and mapping.”
map the surrounding environment. LiDAR al ows for precise,
accurate, and rapid three-dimensional measurements of natural and
Figure 1. LiDAR Applications: Market Forecasts
manmade environments with high resolution and long-range
Figure is interactive in the HTML version of this In Focus.
detection. Unlike other sensing technologies (e.g., cameras), LiDAR’s
performance is not degraded in low light conditions. There are
different types of LiDAR. Scanning LiDAR uses mechanical rotation to
spin the sensor and enables 360-degree detection. U.S. firm Velodyne
(now merged with U.S. firm Ouster) developed the first scanning
LiDAR. Microelectro-mechanical system (MEMS) LiDAR uses
miniature mobile mirrors to scan the environment. MEMS firms
include the U.S. firm Atomica. Optical phased array (OPA) LiDAR
does not require sensor movement and is thus more durable than
alternative LiDAR technologies. OPA firms include Quanergy. Flash
LiDAR works like a camera to map environments using a single laser
pulse. Flash LiDAR firms include LeddarTech (Canada), Sense

Photonics (U.S.), and Continental (Germany).
Source: CRS, adapted from Yole Group.
LiDAR Development and Applications
Notes: ADAS is advanced driver assistance systems. Mfg. is
manufacturing. 2021 is actual market. 2027 is forecasted market.
The United States first developed LiDAR as a military
technology in the 1960s for defense and aerospace uses.
China’s Industrial Policies
Since then, the LiDAR market has expanded with the
China’s LiDAR firms benefit from PRC industrial policies
development of systems capable of autonomous navigation,
and related subsidies, market protections, preferences (e.g.,
for which LiDAR is a critical enabling technology. A range
procurement), and other practices widely seen as unfair.
of commercial and military applications use LiDAR. Its use
PRC policies direct and finance the acquisition of foreign
has grown rapidly with demand for electric vehicles (EV)
IP to develop China’s LiDAR and related technologies
and related autonomous driving systems (Figure 1).
(e.g., semiconductors and optical sensors). Furthermore, in
Commercial: LiDAR has a range of applications in
2020, China prioritized state support to develop sectors that
mapping, satellites, and space. In the automotive sector,
use LiDAR (e.g., smart cities, smart manufacturing,
LiDAR provides sensing capabilities for lane-keeping,
autonomous driving). Since 2022, China has encouraged
collision avoidance, advanced driver assistance, and
foreign investment in its LiDAR sector on terms that
autonomous navigation. In precision farming, it can
develop PRC capabilities and has made LiDAR subject to
monitor crop conditions and soil health. In meteorology,
PRC export controls.
LiDAR can improve weather forecasting. In manufacturing,
PRC policies additionally emphasize technical standards
firms use the technology for robotics and to monitor safety
setting to promote the use of China’s IP and help PRC firms
and productivity. “Smart cities” pair LiDAR with other
expand globally. PRC LiDAR firm Hesai has led China’s
technologies to integrate sensor networks in utilities,
efforts to develop national and global LiDAR standards. In
transportation, and infrastructure. Chattanooga, Tennessee,
the International Standards Organization, Hesai co-leads the
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U.S.-China Competition in Emerging Technologies: LiDAR
Automotive LiDAR Working Group in developing a test
expand production in Shanghai and says it will use earnings
method for LiDAR performance and safety. Hesai co-
from its 2023 U.S. initial public offering for acquisitions,
developed a U.S. standard for automotive LiDAR in 2020
research, and manufacturing. PRC firms may be selling
and global optical radiation safety standards in 2022.
below cost to gain market share. PRC firms had 58% of the
PRC policies incentivize aggressive tactics to obtain foreign
global automotive LiDAR market in 2020, as measured by
IP, which may distort the common use of trade tools and
shipments. Many PRC firms operate at a loss, however,
involve questionable practices or illicit activity. In antitrust
suggesting they may be selling below cost. Some analysts
reviews of global deals, the PRC often sets terms for asset
say the LiDAR market is ripe for consolidation, which may
sales and technology transfer before approving deals. PRC
give China openings to acquire U.S. firms and expand.
regulations give Beijing authority to review any global deal
Figure 2. Major Automotive LiDAR Patent Holdings
it determines to negatively affect competition in China or
globally. The PRC has delayed approval of Intel’s bid for
Israel Tower Semiconductor, a LiDAR chip producer. PRC
firms use China’s courts to set foreign IP licensing terms
and launch copycat cases to challenge U.S. court rulings. In
2019, U.S. firm Velodyne charged the PRC’s Hesai and
RoboSense with IP infringement. Velodyne said the firms
illegally acquired Velodyne IP during negotiations to
produce its products in China. In 2020, Veldoyne and Hesai
settled with a global cross-licensing agreement for existing
and future patents. In 2023, U.S. firm Ouster charged Hesai

with infringing on five Ouster patents.
Source: CRS, adapted from Henry Patent Law Firm.
Note: *China acquired U.S. firms Faraday Future and Quanergy (and
China’s Use of the U.S. Market
then sold Quanergy assets to an LLC in bankruptcy proceedings). A
PRC LiDAR firms are using U.S. capital markets to secure
patent family is a patent col ection covering similar technical content.
financing, enter the U.S. market, negotiate partnerships, and
acquire U.S. technology. In 2022, CITIC, a PRC state
PRC Firms’ Military Ties and National
investment arm, undertook a $1.4 billion reverse merger
Security Issues
with the U.S. firm Quanergy Systems. Quanergy declared
In China, LiDAR systems are regulated as radio systems that
bankruptcy 10 months later and sold its assets for $3.2
require military approval. Additional y, PRC policies seek to
million to a limited liability company (LLC) with possible
develop technologies that are interoperable for civilian and
Russia ties. In 2018, China’s sovereign wealth fund CIC
military use and may allow PRC state access. PRC LiDAR firms
bought the U.S. firm Boyd Corporation in partnership with
support military programs. NavTech provides navigation
Goldman Sachs. In 2015, the PRC state semiconductor fund
technology for satellites (Beidou) and aviation defense (drones
and fighter jets). Hesai makes autonomous warfighting vehicles
financed PRC NavTech’s acquisition of Sweden’s Silex and
for the military and is reportedly tied to the military’s China
a MEMS foundry in China that uses Silex’s IP. In 2015,
Electronics Technology Group Corporation. Robosense has ties
PRC state investors bought OmniVision, a U.S. sensor
to the Harbin Institute of Technology, a military university.
designer (Table 1). PRC automotive firm Geely is invested
There are reports that the U.S. federal government, state
in U.S. Luminar and co-developing LiDAR technologies.
governments, and the U.S. military may be using or
Hesai is partnered with Bosch, a German Tier 1 automotive
considering the use of PRC LiDAR systems. If so, it could have
supplier and key LiDAR patent holder. China also has ties
U.S. national security implications. China could use data
to U.S. LiDAR research. For example, Tsinghua Berkely
compiled by PRC LiDAR systems to acquire sensitive
Shenzhen Institute’s photonics lab works on LiDAR and
information or exquisite mapping of U.S. infrastructure. China
may have ties to the Sensor & Actuator Center and Marvell
could use this information to conduct military or industrial
Nanolab at the University of California, Berkeley.
espionage or gain operational advantages in a military conflict.
PRC firms also could introduce malware via a software update
Table 1. Selected PRC Purchases of LiDAR Firms
and degrade the performance of systems using the technology.
Year
Target
Acquirer
Capability
2015
OmniVision State investors
Sensor design
Issues for Congress
2015
Silek
NavTech, Sino IC Microscopic sensors
To help ensure fair competition and to protect U.S. national
Fund
security, Congress could consider the tactics China is using
2018
Boyd Corp.
CIC
Optical encoders
to advance in LiDAR and whether to strengthen U.S. and

Faraday Future Evergrande, CAS LiDAR IP
allied LiDAR procurement rules to review or restrict
2022
Quanergy
CITIC
Hardware, software
federal, state, and military acquisition of PRC LiDAR
Source: Media and industry reports.
systems. Congress could also consider economic tools and
policies related to foreign investment, export controls, fair
While U.S. and foreign firms have led the LiDAR market
trade, antitrust, standards, capital markets, IP licensing and
with advanced research capabilities and IP, PRC firms are
infringement, bankruptcy, and research.
poised to quickly take a leadership position. PRC industrial
policies, acquisitions of U.S. and foreign firms and IP, and
Karen M. Sutter, Specialist in Asian Trade and Finance
corporate partnerships have already rapidly enhanced PRC
Kelley M. Sayler, Specialist in Advanced Technology and
firms’ position in the LiDAR market, particularly in auto-
Global Security
motive LiDAR (Figure 2). Supported by state monies and
market preferences and protections, PRC firms are scaling
IF12473
up quickly in China. Hesai has a $98.4 million credit line to
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U.S.-China Competition in Emerging Technologies: LiDAR


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