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USA is expanding the black list of China’s top AI start-ups ahead of the talks

WASHINGTON/SHANGHAI (reuters) – The U.S. government, the trade, the black list is to take some of China’s top artificial intelligence, start-ups, it is to punish Beijing for its treatment of Muslim minorities, and to ramp up the tension ahead of high-level talks in Washington this week.

FILE IMAGE: An ethnic Uighur demonstrator wears a mask as she attends a protest against China in front of Chinese Consulate in Istanbul, Turkey, on October 1, 2019. REUTERS/Huseyin Aldemir

The decision, almost certain to draw a sharp response from Beijing, the goals 20 of the Chinese public security bureaus, and eight corporations, including the video-surveillance company, Hikvision (002415.SERIES), as well as the leaders in facial recognition technology SenseTime Group, inc., and Megvii Technology co., Ltd.

The action bars are the companies to buy parts from AMERICAN companies that do not have U.S. government approval – a potentially crippling move. It follows the same blueprint is being used by Washington in its attempt to limit the influence of Huawei Technologies Co. Ltd., for which it claims to be from national security grounds.

U.S. officials have said that the action was not tied to this week’s resumption of trade relations with China, but it does not have the late-in-the-US-President-Donald Trump is a hard-line position as the world’s two biggest economies seek to the end of their 15-month trade war.

The Ministry of Commerce said in a submission to the “entities” 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.”

“The united states Government and the Department of Commerce cannot and will not tolerate the vicious repression of the ethnic minorities in China,” said Commerce Secretary Wilbur Ross.

China’s ministry of commerce will not immediately respond to a Reuters request for comment.

Hikvision, with a market value of about $42 billion, which calls itself the world’s largest maker of video-surveillance gear.

SenseTime in the amount of approximately $4.5 billion in May, 2018, with the funds, it is one of the world’s most valuable AI, unicorns, and while Megvii, supported by the e-commerce giant Alibaba (BABA).N), which is valued at about $4 billion, and is preparing an initial public OFFERING to raise at least $500 million in Hong Kong, china.

The other companies on the list include voice-recognition firm iFlytek Co. (002230.SZ), the surveillance equipment maker, Zhejiang Dahua Technology (002236.SERIES), and digital data forensics products maker Xiamen Meiya Pico Information Co. (300188.SOCIAL and Yixin Science & Technology Co.,

OVERSEAS SALES

An AMERICAN Hikvision spokesperson said that the company is “strongly opposed” to the decision, and it should be noted that in January it will retain a human rights expert and former ambassador to the U.S., to advise the company on the issue of human rights.

“The punishment of Hikvision, in spite of these similarities, it will scare off international companies interact with the US government, pain, Hikvision, AMERICAN companies are partners with a negative impact on the U.S. economy,” the company added.

John Honovich, founder of the video-surveillance and investigations company, IPVM, said: Hikvision and Dahua both make use of Intel Corp. (nasdaq: msft. (INTC.(O) and Nvidia Corp (NVDA.(O), Ambarella Inc (AMBA.(O) Western Digital (WDC.(O) and Seagate Technology (STX.(O) the supply chain and its impact on the Chinese companies, it would be “devastating”.

The list of Smartphone features that hurt many of its U.S. suppliers, which are dependent on the world’s largest telecommunications company and the revenue and make it difficult for Huawei to sell new products.

Reuters reported that in August, Hikvision will receive 30% of the 50 billion yuan ($7 billion), with revenue from outside the country.

SenseTime said in a statement it was deeply disappointed by the US move, which it is in compliance with all applicable laws of the countries in which it operates, and that they are actively involved in the development of a computer code of ethics is to ensure that the technologies are used responsibly.

IFlytek said that the inclusion on the black list, it would have no impact on the day to day operations. “We have anticipated this situation, and will continue to provide excellent products and services to our customers,” he said.

Xiamen Meiya he said the overseas sales, far less than 1% of the total revenue, and that most of its suppliers are domestic companies.

Hikvision and Xiamen Meiya was down a relatively mild 1.6% in trading on Tuesday. Shares of the U.S. supplier, Ambarella was down 12% in after-hours trading on the news.

In fact, China is facing growing condemnation from the Western capitals as well as the rights of groups, the setting up of the facilities by U. N. experts are describing as the mass-detention centers, which have more than 1 million ethnic Uighurs and other Muslims.

In April, a bipartisan group of U.S. lawmakers called on the move against Chinese companies, the so-called “complicit in human rights violations,” and specifically mentioned Hikvision and Dahua.

The united states Secretary of State, and Mike Pompeo said last week at the Vatican that, as long as the state rules are absolute, and that the demands of its citizens to worship the state, not by God. This is the reason why it has more than a million Uighur Muslims, … in the internment camps, and it is the reason for the throw Christian pastors in prison.”

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In August, the Home manager, released an interim rule with a ban on federal purchases of telecommunications equipment from five Chinese companies, including Huawei and Hikvision.

The ban was included in the National Defense Authorization Act, passed last year, restricts the use of federal funds for the purchase of telecommunications equipment and services, and video surveillance equipment “indoor” and telecommunications companies, citing national security concerns.

Huawei has repeatedly denied it is controlled by the Chinese government, the military, or the intelligence services, and has filed a lawsuit against the U.S. government’s restrictions.

Report by David Shepardson Washington, and Josh Horwitz) in Shanghai; Additional reporting by Jane Lee in San Francisco, and Miyoung Kim in Singapore, Brenda Goh in Shanghai; Editing by Tom Brown and Edwina Gibbs

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