Business Maverick: US mulls sanctions against China tech giant Hikvision over human rights issues

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Shares of Hangzhou Hikvision Digital Technology Co tumbled by 10% as the US considers imposing new sanctions on surveillance-technology giant, potentially the harshest measures so far against a major Chinese company.

The Biden administration is weighing whether to add the maker of cameras and surveillance systems to its, according to people familiar with the situation. The sanctions would be related to alleged human-rights violations by China against Muslim minorities in its far-Western region of Xinjiang. A final decision is unlikely this month, said one of the people, who declined to be identified as a decision isn’t finalised.

“It looks to be limited to Hikvision for now, but it creates fresh uncertainty in that in the future, successful Chinese companies could be targeted in this way,” said Wai Ho Leong, a strategist at Modular Asset Management SP Pte. “The potential action by the U.S. government, as reported, remains to be verified,” it said. “We think any such sanction should be based on credible evidence and due process, and look forward to being treated fairly and unbiasedly.”What secondary sanctions mean, for Russia and world: quick take

The fresh, tougher sanctions would take the Biden administration’s economic war against China in a new direction: it would be the first time a Chinese technology company has been added on the SDN list. It deals a potentially heavy long-term blow against Hikvision, as companies and governments around the world would be forced to reconsider their relationship with the camera provider.

 

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