Ads


US government may ban five more Chinese companies in coming weeks



After putting Huawei on the "black list" and preventing the Chinese phone company from using any technology from US companies, the country's government is considering doing the same with five other Chinese monitoring companies.
According to government sources, there are already talks to put Megvii, Zhejiang Dahua Technology Co., Hangzhou Jikvision Digital Technology Co., Meiya Pico and Iflytek Co. Ltd. on the same list of Huawei. specialized in surveillance and video monitoring systems that use technology developed in the United States in their systems.

According to sources within the administration, the Trump administration would be concerned that the technology is being used by the Chinese government to persecute and repress the Uighur population, a Muslim minority living in the west of the country. Although the concern for a possible use of technology to violate human rights is something valid for any government in the world, this concern with a Muslim minority sounds somewhat ironic in this administration that, since March 2017, prohibits the entry into the country of any person coming from seven Muslim majority countries.
The major concern of the market is that this decision could further escalate the US-China fiscal war and that this could turn it into a new Cold War between the two largest economies in the world, which would create a break in an economic market that is far more globalized than it was during the three decades of the original Cold War between the United States and the former Soviet Union.

Today, Hikvision is the global leader in the global video surveillance market, and has a face recognition technology monitoring system that is one of the most used by security systems worldwide, which has made market value of the company to reach $ 32 billion in 2017 - and is expected to grow at least 16% each year by 2023. This makes it one of the Chinese companies with the largest number of shares bought by Western investors, and putting it on the "black list" of the United States will greatly shake the global financial market.

So far, only Hikvision has ruled on the possible ban, saying it expects the company to be treated fairly by the US government. All other companies involved in the rumors declined to comment on the subject.
Trump's fiscal war with China has been rooted from the very beginning of the administration, with government officials accusing Huawei of using its equipment to spy on the country's communications to the Chinese government and to violate the US-imposed economic sanctions on Iran. At the end of last year, Canada arrested the daughter of the Huawei president at the behest of the United States, and is in the process of extraditing her to the country, where she would be arrested on charges of 23 violations of US law.

Source: Bloomberg

Stay Tuned For More :)

Post a Comment

0 Comments