Hikvision facing potential disruption from U.S. component ban
The U.S. government is considering extending a ban on its agencies buying facial recognition and smart camera products from Chinese CCTV giant Hikvision to a ban on U.S. suppliers selling components to the company, over its use in surveillance systems related to the detention of thousands of minorities in the Xinjiang region, the Financial Times reports.
Several core components of Hikvision products are produced in the U.S., and the government is report to be considering sanctions against Chinese companies and officials over the situation in Xinjiang, which could result in a ban on importing components from the U.S. An industry analyst told PYMNTS.com that such a ban would be a major disruption for the company, at the least. Hikvision Vice President Huang Fanghong told said during an earnings call earlier this year that the company is not dependent on American suppliers, however.
Shares in Hikvision have declined 37 percent from a high earlier this year.
Hikvision cameras have been used in many applications in the U.S., and the firm hired public relations help to determine the impacts of the National Defense Authorization Act (NDAA) on it in August.
The U.S. has previously banned exports to Chinese state-owned semiconductor company Fujian Jinhua and telecom ZTE, though the latter has since been lifted.
Hikvision has made significant strides in the international facial recognition market this year, including a contract to provide technology for border control in Zimbabwe.