Following the U.S. Government’s decision on technology developed by Chinese manufacturers, multiple investors from Hangzhou Hikvision Digital Technology and Zhejian Dahua Technology (the two largest surveillance camera manufacturers in the world) decided to get rid of the company’s shares because, according to the cybersecurity specialists, they fear that the impact of this decision will be extended to the rest of their business.
The recently published National Defense Authorization Act bill establishes that U.S. federal government agencies are prohibited from buying surveillance equipment manufactured by some companies in China; President Trump is expected to sign the bill in the next few days.
According to specialists in cybersecurity, Hikvision is a Chinese government-controlled company that has provided surveillance equipment to the U.S. Army to monitor various military bases, as well as working for the police bodies of some cities like Memphis. The company had just announced net gains of about $600M in the first half of the year.
However, after the U.S. decision was made, the company’s actions fell precipitously, closing the week with a loss of 14%. As for Dahua Technology, the company’s shares have fallen 20% since the day the U.S. decision was announced, experts in cybersecurity reported.
Through a statement, Hikvision spoke about it: “By itself, this prohibition would not have a big impact on the company. However, due to its ambiguous writing and objkectives, it is possible for U.S. agencies to make a broader interpretation of the law, which could extend the scope of the ban to non-federal government agencies, private companies, and even more”.
According to specialists from the International Institute of Cyber Security (IICS), the company could form a team to look for a more specific definition of the bill, as well as to analyze the possible consequences that this prohibition could generate in case its interpretation extends to other organizations beyond the U.S. federal government.
“We stay in contact with our customers in the U.S. and try to minimize the negative impact of this decision”, concludes the company’s statement.