US agencies label Chinese tech firms Hesai and Digitalsystem as national‑security threats

The Federal Communications Commission added California‑based Digitalsystem Technology to a list of companies posing risks to U.S. national security, citing its ownership by a Chinese national and ties to Chinese telecom operators such as PCCW, China Unicom and China Mobile. The FCC denied the firm permission to provide international telecommunications services, warning that the government of China and other threat actors could exploit vulnerabilities in U.S. communications. The agency reiterated earlier bans on China Mobile, China Telecom and China Unicom and has proposed prohibiting U.S. carriers from interconnecting with Chinese telecom firms, alongside recent import bans on equipment from manufacturers including Huawei, Dahua, ZTE and Hikvision.

Separately, the U.S. Department of Defense designated Chinese lidar manufacturer Hesai Technology as a Chinese military‑linked entity in January 2024 and a federal court upheld the designation in July 2025. Despite the blacklist, Nvidia selected Hesai in January 2026 to supply lidar sensors for its DRIVE AGX Hyperion 10 autonomous‑driving platform, a partnership that follows Hesai’s integration with Nvidia’s technology since 2023. U.S. senators have called for Hesai’s delisting from Nasdaq, arguing that American investors should not fund a firm considered a national‑security concern.