The US government is considering cutting off technology relations with five other companies from China, including Hangzhou Hikvision Digital Technology – a worldwide surveillance camera giant.
According to the Bloomberg, The US is considering adding Megvii, Hikvision, Zhejiang Dahua Technology and Meiya Pica and Iflytek Co. Ltd. Blacklisted to prohibit these companies from buying and selling parts or software from the United States. The Trump government is concerned that these companies are helping Beijing suppress the Uighur minority group in western China. They were also concerned that Hikvision or Dahua's cameras, which had facial recognition capabilities, could be used to spy.
If the US government does this, their relationship with China will become more intense. Last week, the Trump administration made a ban on Huawei Technologies to deal with US technology companies. This move caused a decline in shares of US chip manufacturing companies such as Qualcomm or Intel and threatened global economic growth as well as inadvertently slowing down the plan to deploy the next wireless network. .
The Chinese yuan is gradually losing value after adverse information. Hikvision and Dahua shares are plunging without braking in Shenzhen after the news they may be the next targeted target in the ban. Both companies are accused by human rights groups that have facilitated Beijing to suppress Uighurs, a Muslim ethnic group, located in the western region of Xinjiang. However, the Trump administration has postponed implementation of the ban due to negotiations for sensitive transactions with China.
It is unclear whether other companies can "join" with Huawei on this blacklist. Called Entity List, companies on this list will not be able to trade or trade with US companies without a special license. Hikvision and Dahua are the world's largest surveillance hardware vendors, along with a smaller competitor named Yitu Technology. Others like SenseTime Group and Megvi (the parent company of Face ++) specialize in image processing software and are less dependent on components from the US.
Hikvision, Dahua and other companies have benefited greatly from Chinese President Xi Jinping. According to IHS Markit, about 176 million video cameras are used to monitor the roads, buildings and public places in this country 1.4 billion people in 2016, much higher than the 50 million in America.
Hikvision, the leader in surveillance cameras, has sold many of its cameras worldwide. Their devices use artificial intelligence (AI) to identify faces on a large scale. That helped the company dominate this $ 32 billion market in 2017 and will also increase by 16% annually to 2023.