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New US Law bans Hikvision and Dahua products
President Trump has signed the
John S. McCain National Defense
Authorization Act for fiscal year
2019. It contains details of a new
law, which will ban the use of
Dahua
and Hikvision products
and their OEMs in US govern-
ment and US government-funded
contracts, becomes effective from
August 2019.
The ban includes also spe-
cifically telecommunications
equipment produced by Huawei
Technologies Company or ZTE
Corporation, or video surveillance
equipment produced by Hytera
Communications Corporation.
There is also wording that sug-
gests the barring of the purchase of
any such equipment produced by
an entity believed to be owned or
controlled by the Chinese govern-
ment.
Additionally, beginning in
August 2020, these government
agencies will also be barred from
entering into, extending, or renew-
ing a contract with an entity that
uses any of the above-mentioned
telecommunication and video
surveillance equipment.
This second provision is most
concerning to the specified firms,
uncertain about how broadly the
ban will be interpreted.
The South China Morning Post
reported that both Dahua and
Hikvision share prices took a dive
on the basis of this news, and that
Hikvision stated: "The ban itself
will not have substantial impact on
the company's business. But due
to its unclear points and semantic
ambiguity in some terms, the bill
might generate broader interpreta-
tions, which could extend the ban
from federal agencies to non-
federal installations [from using
our products]."
According to Jennifer Mapes-
Christ, Senior Analyst and
Manager of the Consumer &
Commercial Goods group at the
Freedonia Group, will the US
government market for video
surveillance systems exceed $700
million by 2021.
The wider impact in terms of
the confidence of international
markets has to be a further con-
sideration, as the bill will almost
certainly make other authorities
consider the question of the integ-
rity of these products.
Dahua's main and public
response has so far been based
around the fact that the company
is not a "government owned en-
tity" as it is publicly traded on the
Shenzhen stock exchange.
Hikvision, on the other hand,
according to Freedonia, is said to
be setting up a team to provide a
more accurate interpretation of
the bill and determine possible
ramifications. The report also says
that Hikvision claims the bill's ban
is based on insufficient evidence,
review or investigation.
Source: Freedonia
Stockholm, Sweden
President Trump has signed the John S. McCain National Defense Authorization Act
for fiscal year 2019. It means that a new law which will ban the use of Dahua and
Hikvision products and their OEMs in US government and US government-funded
contracts becomes effective from August 2019.
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2018-08-30 14:16