Hikvision Could Be Blacklisted by the U.S. Government

Hikvision

The U.S. administration could potentially restrict Hangzhou Hikvision Digital Technology Co., Ltd., a Chinese video surveillance company, from purchasing U.S. technology, sources reported Tuesday.

The move has led to intensifying concerns about trade tensions between China and the U.S. It would add the firm to a blacklist and it would become necessary for U.S. companies to get government approval prior to supplying components to Hikvision.

The U.S. Commerce Department has also banned Huawei Technologies from buying U.S. goods, which consequently restricted U.S. companies from trading with a Chinese firm, and the nation accused the company of engaging in activity that threatens national security.

The U.S. government refused to comment immediately.

Hikvision’s shares registered a drop of 10 percent, while a company executive said the company was unaware of the possible U.S. blacklisting. Hikvision’s most suppliers are from China who supplies them with commercial chips, though there are a few suppliers in the U.S., the executive said, asking not to reveal her identity.

Last month, Hikvision and Dahua Technologies, audio-visual equipment manufacturers, were cited in a letter to the president’s top advisers; the letter was signed by about 40 lawmakers.

China’s activities in the western Chinese region of Xinjiang potentially initiate crimes against humanity, according to U.S. lawmakers, who suggested the government should compact export securities to make sure that U.S. companies are not helping the Chinese government.

Eugene Watt

About Eugene Watt

Eugene is a well-versed market research analyst who has more than 4 years of experience in the industry. He takes care of the Global Industry Insight business column. Though he holds a Masters in Business Administration in his free time, Eugene could be on the cricket ground. Along with keeping track of share market numbers, he is also a very enthusiastic outdoor activity player.

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