- A final decision is unlikely this month, said one of the people, who declined to be identified as a decision isn’t finalized.
- The Financial Times earlier reported on the U.S. deliberations.
- Overseas, the company competes against Canon, Hanwha Techwin and Bosch.
Hangzhou Hikvision Digital Technology Co.’s stock has dropped 10% as the US contemplates fresh penalties against the surveillance-technology behemoth, which might be the toughest actions yet against a major Chinese corporation as reported by BQ Prime.
The Biden administration is weighing whether to add the maker of cameras and surveillance systems to its Specially Designated Nationals and Blocked Persons List, according to people familiar with the situation.
The sanctions would be related to alleged human rights violations by China against Muslim minorities in its far-Western region of Xinjiang.
A final decision is unlikely this month, said one of the people, who declined to be identified as a decision isn’t finalized.
Hikvision’s stock fell as low as 38.24 yuan a share in Shenzhen after the holiday break, dropping by its daily limit.
Hikvision was already blacklisted by the U.S. in 2019 along with seven other Chinese technology giants, making it more difficult for it to do business with American companies.
The Financial Times earlier reported on the U.S. deliberations.
Hikvision said in a statement Wednesday it will comply with applicable laws wherever it operates.
“The potential action by the U.S. government, as reported, remains to be verified,” it said.
“We think any such sanction should be based on credible evidence and due process, and look forward to being treated fairly and unbiasedly.”
What Secondary Sanctions Mean, for Russia and World: QuickTake Hikvision found itself in the cross-hairs of the Trump administration in 2019 after it joined other Chinese companies — including Huawei Technologies Co. — on an Entity List that prevents American firms from supplying it with components and software.
Hikvision, whose cameras are used by agencies and corporations across Europe and Asia, is among the companies Beijing is counting on to spearhead advances in artificial intelligence.
The company doesn’t play a major role in those ambitions but it’s a key partner to Beijing as well as other governments.
Thanks to cheap but capable cameras, the Chinese company has enjoyed rapid growth in recent years.
Overseas, the company competes against Canon, Hanwha Techwin and Bosch.
“China firmly opposes the U.S. moves to use human rights as an excuse, and abuse state power and its domestic law to hobble Chinese companies,” China Foreign Ministry spokesman Zhao Lijian said Thursday at a regular press briefing in Beijing.
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Source: BQ Prime