Updated May 15, 2024
U.S.-China Competition in Emerging Technologies: LiDAR
The governments of the United States and the People’s
Military: U.S. and PRC forces are among the militaries
Republic of China (PRC or China) have both identified
using LiDAR to support autonomous navigation capabilities
strategic and emerging technologies as a key element of
for uncrewed ground and aerial vehicles (UxV). LiDAR’s
economic competitiveness and national defense. Efforts to
precision and speed enable military-specific use. UxV
lead in such technologies are a core aspect of U.S.-China
equipped with LiDAR could be used to conduct battle
strategic competition. Some emerging technologies have
damage assessment—an estimate of the physical and
both civilian and military uses. Among these technologies
functional damage produced by an attack—removing the
is Light Detection and Ranging (LiDAR), a remote sensing
need for military personnel to be physically present and
technology used in automotive, agriculture, manufacturing,
exposed on the battlefield. LiDAR-equipped UxV could be
weather, and other systems. The LiDAR market and its uses
used to survey structural damage after natural disasters and
are developing quickly. U.S. firms have led in LiDAR to
to collect environmental data in remote or dangerous
date, but PRC firms are advancing with the support of PRC
locations. The U.S. military has explored using LiDAR to
industrial policies and access to the U.S. market and
identify and determine the depth of littoral sea mines and to
technology. Some PRC firms have used questionable
conduct atmospheric monitoring to predict laser weapons’
practices to obtain U.S. LiDAR intellectual property (IP).
effectiveness. The U.S. Army says potential uses include
“platform target identification, aim point selection, range
LiDAR Technology
instrumentation support, weapon defenses, and mapping.”
LiDAR is a remote sensing method that uses pulsed laser light to
measure the distance, speed, and/or altitude of physical objects to
Figure 1. LiDAR Applications: Market Forecasts
map the surrounding environment. LiDAR al ows for precise,
Figure is interactive in the HTML version of this In Focus.
accurate, and rapid three-dimensional measurements of natural and
manmade environments with high resolution and long-range
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
Source: CRS, adapted from Yole Group.
Photonics (United States), and Continental (Germany).
Notes: ADAS is advanced driver assistance systems. Mfg. is
manufacturing. 2021 is actual market. 2027 is forecasted market.
LiDAR Development and Applications
China’s Industrial Policies
The United States first developed LiDAR as a military
China’s
technology in the 1960s for defense and aerospace uses.
LiDAR firms benefit from PRC industrial policies
Since then, the LiDAR market has expanded with the
and related subsidies, market protections, preferences (e.g.,
development of systems capable of autonomous navigation,
procurement), and other practices widely seen as unfair.
for which LiDAR is a critical enabling technology. 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). In 2020, China
prioritized state support to develop sectors that use LiDAR
Commercial: LiDAR has a range of applications in
(e.g., smart cities, smart manufacturing, autonomous
mapping, satellites, and space. In the automotive sector,
driving). Since 2022, the PRC has encouraged foreign
LiDAR provides sensing capabilities for lane-keeping,
investment in its LiDAR sector on terms that develop PRC
collision avoidance, advanced driver assistance, and
capabilities and has placed LiDAR under export controls.
autonomous navigation. In precision farming, it can
monitor crop conditions and soil health. In meteorology,
PRC policies additionally emphasize technical standards
LiDAR can improve weather forecasting. In manufacturing,
setting to promote the use of China’s IP and help PRC firms
firms use the technology for robotics and to monitor safety
expand globally. PRC LiDAR firm Hesai has led China’s
and productivity. “Smart cities” pair LiDAR with other
efforts to develop national and global LiDAR standards. In
technologies to integrate sensor networks in utilities,
the International Standards Organization, Hesai co-leads the
transportation, and infrastructure. Chattanooga, Tennessee,
Automotive LiDAR Working Group in developing a test
for example, plans to use LiDAR at 86 traffic intersections
method for LiDAR performance and safety. Hesai co-
in an effort to improve traffic management and safety.
https://crsreports.congress.gov

---

U.S.-China Competition in Emerging Technologies: LiDAR
developed a U.S. standard for automotive LiDAR in 2020
expand production in Shanghai and says it will use earnings
and global optical radiation safety standards in 2022.
from its 2023 U.S. initial public offering for acquisitions,
PRC policies incentivize aggressive tactics to obtain foreign
research, and manufacturing. PRC firms had 58% of the
IP, which may distort the common use of trade tools and
global automotive LiDAR market in 2020, as measured by
involve questionable practices or illicit activity. In antitrust
shipments. Many PRC firms operate at a loss, suggesting
reviews of global deals, the PRC often sets terms for asset
they may be selling below cost to gain market share. Some
sales and technology transfer before approving deals. PRC
analysts argue the LiDAR market is ripe for consolidation,
regulations give Beijing authority to review any global deal
which may give China openings to acquire U.S. firms and
it determines to negatively affect competition in China or
expand.
globally. The PRC has delayed approval of Intel’s bid for
Figure 2. Major Automotive LiDAR Patent Holdings
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.
China’s Use of the U.S. Market

Source: CRS, adapted from Henry Patent Law Firm.
PRC LiDAR firms are using U.S. capital markets to secure
Note: *China acquired U.S. firms Faraday Future and Quanergy (and
financing, enter the U.S. market, negotiate partnerships, and
then sold Quanergy assets to an LLC in bankruptcy proceedings). A
acquire U.S. technology. In 2022, CITIC, a PRC state
patent family is a patent col ection covering similar technical content.
investment arm, undertook a $1.4 billion reverse merger
with the U.S. firm Quanergy Systems. Quanergy declared
Military Ties and National Security Issues
bankruptcy 10 months later and sold its assets for $3.2
In China, LiDAR systems are regulated as radio systems that
million to a limited liability company (LLC) with possible
require military approval. Additional y, PRC policies seek to
Russia ties. In 2018, China’s sovereign wealth fund CIC
develop technologies that are interoperable for civilian and
bought the U.S. firm Boyd Corporation in partnership with
military use and may allow PRC state access. PRC LiDAR firms
Goldman Sachs. In 2015, the PRC state semiconductor fund
support military programs. NavTech provides navigation
financed PRC NavTech’s acquisition of Sweden’s Silex and
technology for satellites (Beidou) and aviation defense (drones
and fighter jets). Hesai makes equipment used in autonomous
a MEMS foundry in China that uses Silex’s IP. In 2015,
warfighting vehicles and is reportedly tied to the military’s China
PRC state investors bought OmniVision, a U.S. sensor
Electronics Technology Group Corporation. Robosense has ties
designer (Table 1). PRC automotive firm Geely is invested
to the Harbin Institute of Technology, a military university.
in U.S. Luminar and co-developing LiDAR technologies.
There are reports that the U.S. federal government, state
Hesai is partnered with Bosch, a German Tier 1 automotive
governments, and the U.S. military may be using or
supplier and key LiDAR patent holder. China also has ties
considering the use of PRC LiDAR systems. If so, it could have
to U.S. LiDAR research. For example, Tsinghua-UC
U.S. national security implications. China could use data
Berkeley Shenzhen Institute’s photonics lab in China works
compiled by PRC LiDAR systems to acquire sensitive
on LiDAR. The Institute’s ties to University of California
information or exquisite mapping of U.S. infrastructure. China
may give PRC researchers access to the Sensor & Actuator
could use this information to conduct military or industrial
Center and Marvell Nanolab in 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
In 2024, the Department of Defense added Hesai to its list of
2015
OmniVision State investors
Sensor design
military companies in accordance with the Wil iam M. (Mac)
2015
Silek
NavTech, Sino IC Microscopic sensors
Thornberry National Defense Authorization Act for FY2021,
Fund
Section 1260H (P.L. 116-283).
2018
Boyd Corp.
CIC
Optical encoders

Faraday Future Evergrande, CAS LiDAR IP
Issues for Congress
2022
Quanergy
CITIC
Hardware, software
To help ensure fair competition and to protect U.S. national
Source: Media and industry reports.
security, Congress could consider the tactics China is using
While U.S. and foreign firms have led the LiDAR market
to advance in LiDAR and whether to strengthen U.S. and
with advanced research capabilities and IP, PRC firms are
allied LiDAR procurement rules to review or restrict
poised to quickly take a leadership position. PRC industrial
federal, state, and military acquisition of PRC LiDAR
policies, acquisitions of U.S. and foreign firms and IP, and
systems. Congress could also consider economic tools and
corporate partnerships have already rapidly enhanced PRC
policies related to foreign investment, export controls, fair
firms’ position in the LiDAR market, particularly in auto-
trade, antitrust, standards, capital markets, IP licensing and
motive LiDAR, as seen in recent patents granted to PRC
infringement, bankruptcy, and research.
firms (Figure 2). Supported by state monies and market
Karen M. Sutter, Specialist in Asian Trade and Finance
preferences and protections, PRC firms are scaling up
quickly in China. Hesai has a $98.4 million credit line to
https://crsreports.congress.gov

---

U.S.-China Competition in Emerging Technologies: LiDAR

IF12473
Kelley M. Sayler, Specialist in Advanced Technology and
Global Security


Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF12473 · VERSION 3 · UPDATED

---