The US is about to issue unprecedented sanctions against Hikvision

According to Bloomberg, shares of Hangzhou digital technology company Hikvision Digital Technology Co fell 10% as the US considered imposing new sanctions on the maker of cameras and surveillance systems. This could be the harshest US decision to date against a major Chinese tech firm.

Hikvision shares fell 10% as US considers imposition of new sanctions Reuters

According to sources familiar with the matter, the administration of US President Joe Biden is currently considering whether to add Hikvision to the Specially Designated Nationals and Blocked Persons List. This list is for restricted groups of countries, organizations and individuals business with the United States, American companies or Americans in general, often including terrorist organizations, terrorists and state sponsors of terrorism. Sanctions against Hikvision relate to alleged human rights abuses against the Muslim minority in China’s Xinjiang region.

In 2019, Hikvision was blacklisted by the administration of former US President Donald Trump along with seven other major Chinese technology firms, making it difficult to do business with US companies. The upcoming tougher sanctions will not only prevent Americans from doing business with Hikvision, but will also cause the company’s global customers to rethink their business relationships as they are also likely to be targeted. US potential.

“It seems to be the limit for Hikvision right now. It also creates new uncertainty in the future, any successful Chinese company could be targeted in this way,” said Wai Ho Leong, strategist at Modular Asset Management SP Pte , speak.

According to Financial Times, Hikvision said on May 4 that it will comply with applicable laws everywhere it operates. “Potential action by the US government remains to be verified. We think that any such sanction should be based on reliable evidence and due process. We expect fair and impartial treatment.”

Hikvision is one of the companies that China expects to lead the way artificial intelligence. The company is not only an important partner of the Beijing government but also of other governments. The company’s cameras are used by agencies and corporations across Europe and Asia. Thanks to low-cost but capable cameras, Hikvision has achieved rapid growth in recent years. Demand for surveillance cameras, video storage and data analysis services has increased sharply, especially in the mainland market. Meanwhile, in the overseas market, Hikvision competes directly with Canon, Hanwha Techwin and Bosch.