U.S. Considers Unprecedented Sanctions on China Tech Giant Hikvision

The U.S. is considering imposing new sanctions on a major Chinese company.

According to people familiar with the situation, the Biden administration is considering adding the maker of cameras and surveillance systems to its Specially Designated Nationals and Blocked Persons List. There are allegations of human-rights violations against Muslim minorities in the far-Western region of China. A final decision isn't likely this month, according to one of the people.

After the holiday break, Hikvision's stock fell as low as 38.24 yuan a share in Shenzhen, dropping by its daily limit.

The U.S. blacklisted Hikvision and seven other Chinese technology giants, making it more difficult for it to do business with American companies. The company's global customers would be potential targets of the U.S. action if the harsher sanctions were to be considered.

It looks to be limited to Hikvision for now, but it creates fresh uncertainty in that in the future, successful Chinese companies could be targeted in this way.

The US deliberations were reported by the Financial Times. In a statement, Hikvision said it will comply with applicable laws wherever it operates.

The potential action by the U.S. government, as reported, remains to be verified.

A representative for the U.S. National Security Council said it doesn't show future sanctions.

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Hikvision was placed on an Entity List that prevents American firms from supplying it with components and software after it joined other Chinese companies.

It would be the first time a Chinese technology company has been added to the list of companies that are subject to sanctions. It deals a potentially heavy blow to Hikvision, as companies and governments around the world would be forced to reconsider their relationship with the camera provider.

Beijing is counting on companies like Hikvision to lead the way into artificial intelligence. The company doesn't play a major role in those ambitions, but it is a key partner to Beijing and other governments. Its cameras have been used in cities from Paris to Bangkok, and are considered to be pivotal to crime prevention as well as helping build smart cities.

The Chinese company has enjoyed rapid growth thanks to cheap but capable cameras. Its home market has seen a boom in demand for its services. Canon, Hanwha Techwin and Bosch compete against the company overseas.

With help from Peter Elstrom and Abhishek Vishnoi.