After Huawei, US can blacklist Chinese surveillance tech firm

US stuck Huawei Technologies on a trade blacklist last week

SHANGHAI: The US administration is considering Huawei-like sanctions on Chinese video surveillance firm Hikvision, media reports show, deepening worries that trade friction between the world's top two economies could be further inflamed.

The restrictions would limit Hikvision's ability to buy US technology and American companies may have to obtain government approval to supply components to the Chinese firm, the New York Times reported on Tuesday.

The United States stuck Huawei Technologies on a trade blacklist last week, effectively banning US firms from doing business with the world's largest telecom network gear maker, in a major escalation in the trade war.

The United States has accused Huawei of activities contrary to national security, a charge Huawei denies. However, this week the Trump administration granted the firm a licence to buy US goods until August 19 to minimise disruption for customers.

Huawei says it can ensure a steady components supply chain without US help. A Hikvision executive echoed the sentiment.

"Even if the US stops selling them to us we can remedy this through other suppliers," a Hikvision executive said on condition of anonymity given the sensitivity of the matter.

"The chips Hikvision uses are very commercial and most of the suppliers are actually in China," she said, but added the company had not been informed of any possible US blacklisting.

The White House did not respond to a request for comment.

Bloomberg, citing people familiar with the matter, reported the US government was deliberating whether to add Hikvision, security equipment maker Zhejiang Dahua Technology and several other unidentified firms to a blacklist.

A Dahua investment department employee declined to comment.

Hikvision, with a market value of more than $37 billion, calls itself the world's largest video surveillance gear maker.

Its products are used in public places in China, from Beijing to Xinjiang. Headquartered in hi-tech Hangzhou, one of China's richest cities, it sells close-circuit TV products, traffic and thermal cameras, and unmanned aerial vehicles.

China's foreign ministry on Wednesday urged the United States to provide a fair environment for Chinese firms, in the wake of reports Hikvision could be blacklisted.

"Recently we have repeatedly expressed China's position of opposing the United States' abuse of national power to wilfully smear and suppress other countries' companies, including Chinese companies," ministry spokesman Lu Kang said at a briefing.