NEW YORK/HONG KONG (Reuters) – Goldman Sachs Group Inc. said on Tuesday it was reviewing its involvement in the Megvii Technology Ltd’s planned initial public offering after the U.S. government placed in the China, an artificial intelligence company, to be a human rights ” black list.
FILE PHOTO: the Goldman Sachs logo is displayed at the company’s space on the second floor of the New York Stock Exchange (NYSE) in New York, New York, USA, on April 17, 2018. REUTERS/Brendan McDermid
The Trumpet of the management said on Monday that the Megvii and seven other Chinese companies have been targeted because they were involved in Beijing’s crackdown on the Muslim minority of the population in the Xinjiang Uighur Autonomous Region in the far west of the country.
In a statement, via e-mail in response to a request for comment on the Alibaba-backed Megvii the IPO, Goldman has said that it “will evaluate in the light of recent developments.”
Sources had previously told Reuters that the stock exchange listing planned for Hong Kong in the fourth quarter, and could raise as much as $1 billion.
Other US-based companies that are involved in the “black list” of Chinese companies, or investors, or insurance companies, will also have a chance to re-evaluate their relationship to risk for consultants and the Silicon Valley, the lawyers said.
Goldman is a co-sponsor of the Megvii the IPO, in addition to Citigroup Inc. JPMorgan Chase & Co., which both declined to comment. Megvii declined to comment on Goldman’s testimony.
Goldman has had in-depth evaluation of the Megvii deal in the first instance, the signature with the help of the usual due diligence process, a person familiar with the matter said.
Well-known for its face recognition platform Face++, Megvii the first Chinese AI to the company, to the general public as well as the deal continues.
The company will offer facial recognition, and other AI technologies to governments and companies, including Alibaba, Ant, Financial, Lenovo Group Ltd and Huawei.
THE MUSLIM ASSAULT
The U.S. Department of Commerce, on Monday ruled out for eight companies, as well as 20 government entities, and the purchase of US technology without US government approval.
That will be a high-powered computer chips are made in the united states by companies such as Nvidia, Intel and Qualcomm, which are considered to be essential for the building and the opportunity to work with a lot of COMPUTER-based systems.
The government has said that it is the entities that are involved in human rights violations and abuses in the implementation of China’s campaign of repression, mass arbitrary detention, and the high-tech protection against the Uyghurs, Kazakhs, and other members of the Muslim minority”.
Megvii said that it “strongly objects” to be added to the black list, and there were “no grounds” for the appointment. In a statement, said it is only about 1% of the revenue came from Xinjiang, in 2018, and none in the six-month period ended on the 30th of June.
She added that in May 2019 at the latest report from the Human Rights Watch (HRW) in a surveillance-free app in Xinjiang had been involved Megvii Face++, but in a revised and re-issued in a report, IT does not highlight Megvii name.
On Tuesday, the U.S. government imposed visa restrictions on Chinese government and Communist y officials it believes are responsible for the detention or the abuses of Muslims in Xinjiang.
U. N. experts and activists say at least 1 million are Uighurs, members of other, mostly Muslim minority, were detained in camps in the region.
Beijing denies any abuses in the camps, it says, is to provide education and help to stamp out religious extremism and the learning of new work skills.
U.S. Senator Marco Rubio, who is in search of a spotlight, both because of the convenient access that the Chinese companies in the U.S. markets, as well as violations of the human rights situation in Xinjiang, said the government’s move was long overdue.
“We need to continue to step up their efforts to hold the Chinese government and the Communist y of the civil servants be held responsible for any crimes against humanity have been committed in Xinjiang,” it said in a statement.
“TO PUT HERSELF IN DANGER!”
In the past few years, the Chinese and foreign investors have poured money into start-ups that specialize in facial recognition software and other surveillance equipment and software. They were supported by China’s plans to build an all-pervasive CCTV surveillance network.
Any other business that the US government is in the black list, the SenseTime is one of the world’s most respected artificial intelligence companies, and it has a tent, U.S. technology investors, Tiger Global and Silver Lake ners are among the contributors. Fidelity, the US mutual fund business, there is also a SenseTime investors, along with Qualcomm.
The international monetary fund has reported that the Massachusetts Institute of Technology (mit), said that it will provide an assessment of the relationship with the SenseTime is the first company to join the AMERICAN school of research into human and machine intelligence.
MIT should review all of its existing relationships with organizations such as the black list, the international monetary Fund, according to a spokesperson for the police said in an e-mail.
Risk consultants say that investors and companies have jumped into the sector, without fully assessing the risks to their reputation and the ratings of the companies in question.
“There is a lack of adequate due diligence is performed on these companies, both from a national security and human rights perspective,” said Roger Robinson, president and chief executive officer of the Washington, DC-based risk consultancy, RWR advisory group, and former senior director for international economic affairs at the National Security Council.
He said that investors and others who are involved in these Chinese companies may be putting themselves in danger.”
Silver Lake, Tiger Global, and Qualcomm all declined to comment. True, not immediately return a call seeking a comment.
“There will be a judgment call whether a U.S. investor would want to be associated with these companies,” said Rocky Lee, a managing partner of the Silicon Valley office of the law firm King & Wood Mallesons.
“I think you’ll find that there is a “be still” to the left of the AMERICAN funds, and any records, at least in the US, the investors, who have a strong sense of the ownership of the companies that are involved in these activities to be immoral, or politically incorrect.”
Reporting by Joshua Franklin and Julie Zhu; Writing by Martin Howell; Editing by Sandra Maler, Jane Wardell and Edwina Gibbs