China’s Hikvision said that the decision from the United States government to put them on trade blacklist will have a short term effect on the performance of the company which provides video surveillance.
The stiff between China and America is going for a while now as they also banned the smartphone company Huawei earlier this year where it causes a global sensation. Along with Hikvision, there are seven other Chinese companies that were put on the trade blacklist on Monday. All these eight companies were put on the blacklist due to the treatment of Muslim minorities in Beijing which faced a lot of backlashes. The tension in both countries is growing every single day as they are approaching high-level trade talks which is in Washington this week.
These actions also affect the top startups from Chine like SenseTime Group and Megvii Technology. These AI Startups are now under the trade blacklist which means that they won’t be able to buy new components from any US companies without approval from the US government.
The general manager of Hikvision, Hu Yangzhong said to the reporters that this blacklist won’t affect the long term plan of the company as they were already prepared for it for two years. This ban will only affect them for a short period of time and they have also reduced their dependence on US components.
Hikvision does not have the permission to sell a product to the US federal government from August. It is because some systems might give access to sensitive files of the US government. There are five other firms from China that are also blocked as it will be a threat to the security of the US government. Hikvision uses Ambarella, Western Digital, Nvidia, Seagate, and Intel as the supplier for the technology.