Senators Rick Scott, Marsha Blackburn, and Bernie Moreno have sent a letter to the Securities and Exchange Commission (SEC) Chairman Paul Atkins and Treasury Secretary Scott Bessent urging the immediate delisting of Hesai Group from the NASDAQ stock exchange. The senators cite concerns that Hesai has been identified as supporting the Chinese military, posing what they describe as a national security threat.
The senators’ request follows actions by the Department of Defense (DoD), which initially designated Hesai as a Chinese military company under Section 1260H of the National Defense Authorization Act in January 2024. The Pentagon relisted Hesai in October 2024 after obtaining more evidence of military ties. On July 7, 2025, a U.S. District Court decision upheld this designation after Hesai’s legal challenge was denied.
In their letter, the senators state: “We write to express our profound concern regarding the continued listing of Hesai Group (“Hesai”) on the U.S. NASDAQ exchange. As detailed in previous correspondence, Hesai’s designation as a Chinese military company by the Department of Defense presents serious national security concerns that warrant immediate delisting action to protect investors and prevent their hard-earned dollars from funding an adversarial military. As such, we call on you to take immediate steps to delist Hesai from the NASDAQ to maintain the quality of and public confidence in the exchange. Hesai’s operations are fundamentally incompatible with U.S. national security interests and investment standards.”
The letter references recent legislation introduced by Senator Scott aimed at addressing risks posed by Chinese companies in U.S. markets and protecting American investors.
The court ruling cited in their correspondence stated: “the Court concludes that the DoD’s finding that Hesai contributes ‘to the Chinese defense industrial base’ is supported by substantial evidence because the evidence in the record viewed in light of the nature of LIDAR technology could lead ‘a reasonable mind might accept as adequate to support a conclusion.’” According to this decision, there is confirmation that Hesai operates actively as a Chinese military company within the United States.
The senators also warn that Americans may be investing their savings into a company tied to China’s military as long as it remains listed on NASDAQ. They quote President Trump’s America First Investment Policy: “The PRC is also increasingly exploiting United States capital to develop and modernize its military, intelligence, and other security apparatuses, which poses significant risk to the United States.” They further cite: “Those Chinese companies also raise capital by: selling to American investors securities that trade on American and foreign public exchanges; lobbying United States index providers and funds to include these securities in market offerings; and engaging in other acts to ensure access to United States capital and accompanying intangible benefits. In this way, the PRC exploits United States investors to finance and advance the development and modernization of its military.”
According to their letter, there is evidence linking Hesai’s products with People’s Liberation Army combat vehicles and surveillance systems used against Uyghur Muslims in Xinjiang. Reports are also mentioned about espionage involving LIDAR technology near Philippine military bases.
They point out that under Executive Order 13959, Treasury has authority to add companies like Hesai—if operating within China’s defense or surveillance sectors—to its list restricting access for U.S. investors.
“Hesai’s continued presence on U.S. capital markets directly contradicts NASDAQ’s listing requirements, particularly those related to the public interest and protection of investors,” they write.
The senators urge both agencies for action before September 1, 2025: “In light of this information, we call on the SEC to take immediate action to delist Hesai from the U.S. NASDAQ and call on the Treasury to take immediate action to add Hesai to the NS-CMIC List. We request a response by September 1, 2025, detailing the steps the SEC and Treasury will take to address these concerns and protect U.S. investors from unwittingly financing China’s military modernization through Hesai’s securities.”
