WASHINGTON/SHANGHAI (reuters) – The U.S. government is considering Huawei-such as sanctions on the Chinese video surveillance company Hikvision about the country of the treatment of the Muslim Uighur minority, a person briefed on the matter said, the latest effort of the Trumpet administration to crack down on Chinese companies in the field of trade friction between the two economies escalates.
FILE PHOTO: A Hikvision logo is shown at an exhibition during the World Intelligence Congress in Tianjin, China-May 16, 2019. REUTERS/Jason Lee/File Photo
Hikvision was named in a letter to the AMERICAN President Donald Trump’s top advisers in the last month, signed by more than 40 lawmakers, which called for stricter U.S. export controls on China’s treatment of the Uighurs in the Xinjiang province in western China.
The restrictions, which, according to the source are some of the options being considered by the Trump administration, would severely limit Hikvision have the opportunity to buy AMERICAN technology from American companies.
The Ministry of economic affairs declined to comment.
The United States placed Huawei Technologies trade on a “black list” of last week, making it very difficult for AMERICAN companies to do business with one of the largest telecom network gear maker, in a major escalation in the trade war.
China and the U.S. have escalated tariff increases on each other’s products after the trade negotiations to resolve their dispute broke, and the controversy has intensified since Washington last week on the black list of Huawei.
In the last year of the defense policy bill, signed by Trump in August, the recipients of federal funding were banned from the use of telecommunications equipment, video recording services, and networking components made by Huawei or ZTE. Also in the bill are Chinese audio-video equipment providers Hikvision, Hytera, Dahua Technology, and their affiliates.
Hikvision said: ‘at night, can ensure stable component supply chain without AMERICAN help. “Even if the US stops selling them to us, we can remedy this by other suppliers,” a Hikvision executive said on condition of anonymity, adding that “most of the suppliers in China.”
The New York Times was the first report of the possible places on the black list of Hikvision. Bloomberg, quoting sources, reported the U.S. government was in the deliberation or adding Hikvision, security equipment maker Zhejiang Dahua Technology and a number of other non-identified companies on a black list.
A Dahua investment department employee declined to comment.
Hikvision, with a market value of more than $37 billion, calls itself the world’s largest video-surveillance-gear-maker.
The products of the company, including a closed-circuit TV products, traffic, and thermal cameras and unmanned aerial vehicles that are used in public places in all of China.
China faced with growing worldwide condemnation for the establishment of facilities in Xinjiang that the U. N. experts describe as mass detention centers that are more than 1 million ethnic Uighurs and other Muslims.
Reporting by David Shepardson in Washington; Brenda Goh in Shanghai; Additional Reporting by Rama Venkat and Philip George in Bengaluru, Michael Martina in Beijing and Shanghai Newsroom; Writing by Chris Sanders