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Exclusive: Alibaba, China Mobile weigh $443 million investment in blacklisted Dahua - sources

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Alibaba Group Holding Ltd and China Mobile Communications Group Co Ltd [CHNMC.UL] are considering investing 3 billion yuan ($443 million) in Zhejiang Dahua Technology Co Ltd, three people with knowledge of the matter said.

Dahua, China’s second-largest surveillance equipment maker, is among Chinese tech firms that Washington last year placed on a blacklist of companies it said helped Beijing monitor and detain Uighurs and other Muslim minorities. Those blacklisted cannot buy U.S. technology without U.S. government approval.

China Mobile is also negotiating a three-year business agreement with Dahua worth 40 billion yuan, said two of the people, who declined to be identified as the plans are private. The business agreement and investment plan are reported here for the first time. Neither China Mobile nor Alibaba responded to requests for comment. Dahua said it did not have any information on the matter.

China’s smart city market is likely to be worth 25 trillion yuan by 2022 from 7.9 trillion yuan in 2018, showed July data from researcher Qianzhan. The COVID-19 pandemic has added to prospects with demand surging globally for thermal cameras.

 

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