The Trump administration is considering applying Huawei-level sanctions to five more Chinese technology companies in the video surveillance sector including Megvii, Zhejiang Dahua Technology, Hangzhou Hikvision Digital Technology, Meiya Pico and Iflytek. The sanctions would bar the companies from buying U.S. software or hardware components.
According to the Trump administration, the companies have played a role in Beijing’s efforts to clamp down on minority Uighurs in western China. They are also global leaders in video surveillance, including facial recognition software that raises fears of espionage.
From the Chinese end a ban on U.S. technology sales to these companies is likely to look very different. These are companies that are among China’s global technology leaders and sanctions on them will be seen in China as yet another sign that the United States wants to use the current trade war to prevent the rise of Chinese economic power.
These names aren’t exactly familiar to U.S. investors but China’s video surveillance companies are the world’s largest sellers of surveillance hardware. Â The companies have leveraged their global market presence on China’s huge domestic video surveillance sector. About 176 million video surveillance cameras were deployed in Chinese streets, buildings, and public spaces in 2016. That compares to 50 million surveillance cameras deployed in the United States in 2016, according to IHS Markit.
In the sector Hikvision is the industry leader in a global market that was worth $32 billion in 2017 and that is forecast, according to BIS Research, to grow by 16% a year through 2023. Hikvision and Dahua are members of the MSCI Asia Pacific Index and they are among the Shenzhen market stocks most owned by overseas investors.
China is concerned about the Uighurs, Trump the implications of using technology by China on them and ultimately on us. Why is intellectual property important. Let me give you another more applicable lesson in history. The Mongol hordes conquered most of the world including half of Europe. When they conquered China (the Song Dynasty at the time) they acquired gun powder. The Chinese and the Mongols made weapons of little effect with gun powder. It was European’s in Kublai’s court not Marco Polo who brought gun powder technology back to Europe in within about 50 years made the first musket’s and cannons. Europe used this technology along with unwitting germs and steel to conquer the new world. Russia subjugated for hundreds of years by the Mongols used this technology mainly under Ivan the Terrible to conquer the very people who let this technology slip through their hands ending their empire and in turn the balance of power until this day. One must ask oneself what is the next saltpeter, and will we just give it to China shifting the balance of power once again. Under China ask the Uighurs and the Tibetans what life is like under that power. I will take my stock gyrations like a man (others if it applies like a brave woman) as we still go up and watch others whine.
Trex, another American showing their lack of knowledge of even high school history. The Uighur’s were a large band of Turks not Chinese. So I would take your assessment of past history and applying it to now as the word of someone who has no idea of the past or present. Obviously the last person I would ask advise on the direction of the stock market. Trump is doing great taking on China and keeping this bull alive at the same time. No one thought this possible a year or two ago. China, not a threat, well Mr. Historian ask a Tibetan. With President Trump in the captain’s chair we go up with downturns not in a parabolic one way direction up as that never happens this many years into a bull. You could better I am sure. PS: If one said the Huns it would be more accurate or better yet but still not the Chinese the Xiongnu.
President Trump is concerned about the Uighur’s. How utterly absurd
Negotiation with the use of diplomatic trade policy, backed up with consequences, is truly the only way two competing economies can work together. As has been seen over decades, China cooperates only as a surface level tactic, while financially supporting their industries. In this case, Trump is using bullying tactics, with a modest amount of effect. We take their tennis balls and they take our chewing gum. The outcome is all the same. Rather than charging them to export to the US, we should be finding a different source or creating it ourselves. When that cannot be done, then and only then do we limit the amount coming in tariff-free, say 20%, then the tariff gradually tacks onto to each 5% increase. That’s negotiation.
To Grand Slam every item or company gets the same in return; an end to trade. Trumps is a bully and can’t think farther than his first finger in math.
It’s President Trump. He’s the reason the economy is on a roll.