China’s Surveillance Giants Abandon Xinjiang Projects Amid Controversy
Termination of Contracts
In a surprise move, Zhejiang Dahua Technology, a leading Chinese video surveillance equipment manufacturer, has announced the termination or exit of five projects with local governments in China’s Xinjiang region. The company’s subsidiaries are also involved in the withdrawal. According to a stock exchange filing, some projects were terminated ahead of schedule, while others were still operational.
Background of the Projects
The projects in question were awarded between 2016 and 2017. Dahua has stated that it will cease operating the projects and proceed with asset disposal and debt resolution works. However, the company has not provided a reason for its withdrawal from the projects.
Industry Trend
Dahua’s decision follows a similar move by another Chinese surveillance camera manufacturer, Hikvision, which exited contracts with five local governments in Xinjiang earlier this month. Like Dahua, Hikvision did not provide a reason for its withdrawal.
US Sanctions
The withdrawal of these Chinese tech giants from Xinjiang projects comes amid controversy surrounding their alleged involvement in “repression and high-tech surveillance” against Uyghurs and other Muslim minorities in the region. In 2019, the United States added Dahua and seven other tech firms to its trading blacklist, citing these allegations. Dahua has denied any wrongdoing, stating that the US decision lacked “any factual basis.”
Chinese Government Response
The Chinese government has consistently rejected allegations of human rights abuses in Xinjiang and has criticized companies that remove firms operating in the region from their supply chains. The government’s stance has put pressure on companies like Dahua and Hikvision to reevaluate their involvement in the region.
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