Chinese biometrics firms settle in Hong Kong for international market access

Chinese biometric recognition companies are eyeing Hong Kong as a springboard for expanding to foreign markets, according to company executives.

After voice recognition company iFlytek decided to set up global headquarters in Hong Kong in July last year, facial recognition firm CloudWalk has also shared intentions to establish an entity in the city. The move should boost the Guangzhou-based company’s overseas development, the company’s co-founder Liu Jun shared during a forum on technology development in the Greater Bay Area this week.

CloudWalk says the company chose Hong Kong for its office because of its talent, international influence, innovation policies and scientific resources, The South China Morning Post reports.

The special administrative region has been attempting to lure AI companies from Mainland China in a pivot towards technology. Last month, the government promised to invest HK$1 billion (US$128.67 million) in a new Artificial Intelligence Research and Development Institution (AI R&D Institute).

In October last year, Hong Kong also allocated HK$3 billion to subsidize AI development over the next three years. The subsidies are targeted at local universities, research institutes and enterprises that want to leverage the computing power of the Cyberport’s AI Supercomputing Centre (AISC).

The government’s efforts may be paying off. During the launch of its international headquarters last year, iFlytek and its subsidiary Xunfei Healthcare pledged to invest HK$400 million ($51.4 million) in Hong Kong over the next five years. The Anhui-based firm also promised to set up an international R&D center for “intelligent speech, large cognitive model and arithmetic center.”

iFlytek has also been investing in Cantonese voice recognition to serve Hong Kong’s businesses, Yan Qingxi, the company’s head of Hong Kong and Macau, said during the event this week.

“The delivery standards for IT solutions [here] align with the best in the world,” says Yan. “If we can serve the Hong Kong market well, we can serve any international market.”

In January, the U.S. Department of Defense added several Chinese tech companies, including SenseTime and CloudWalk, to its Chinese Military Companies List (CMC List). iFlytek was placed on a U.S. trade blacklist in 2019 for aiding the Chinese government in the mass surveillance of the Uyghur population. But this hasn’t stopped the firms from entering other foreign markets.

Earlier this month, iFlytek said it’s planning to expand its European business. The Anhui-based firm currently sells in France and Hungary, Vice President Vincent Zhan said during the Mobile World Congress in Barcelona.

“For next year, we have a plan to expand to more countries in Europe, such as Spain and Italy,” says Zhan.

CloudWalk, on the other hand, has been supplying its technology to Zimbabwe since 2018.

Article Topics

biometrics  |  China  |  CloudWalk Technology  |  Hong Kong  |  iFlyTek