The U.S. administration is reportedly considering blacklisting another Chinese firm, hitting it with similar sanctions to those it imposed on Huawei a week ago.
The firm in question is Hikvision, a video surveillance company that calls itself the largest maker of surveillance gear in the world. The firm has a current market valuation of $37 billion.
The reports have come hours after the U.S. moved to ease Huawei restrictions for at least three months, but could deepen worries around the global markets.
According to media reports, the sanctions would limit the Chinese company’s ability to purchase technology from the U.S. while American firms would need to acquire government licenses for them to supply components to Hikvision.
Huawei has reportedly said that it has the capacity to get components without relying on U.S. help, and it appears that is the sentiment at Hikvision. An executive with the company has said that they can remedy any potential shortfalls in supplies by looking to other markets.
According to the exec, the chips that Hikvision uses in its equipment “are very commercial,” with most suppliers being local Chinese companies.
However, she noted that at the moment, the company has not received any information from the U.S. regarding the impending ban.
Bloomberg has also noted that the White House has not given a comment on the matter.
But the publication cites people close to the development as saying that the U.S. government has deliberated on the matter. The sources say other than Hikvision, the other company at risk of being blacklisted is Zhejiang Dahua Technology, a security equipment manufacturer. The same ban could befall several other unidentified companies, the sources said.
Hikvision products are widely used in China, with its closed-circuit TV (CCTV) products, traffic cameras installed in China’s big cities. The firm also makes unmanned aerial vehicles that are gaining in popularity across the global market.
Incidentally, Hikvision and Dahua were among companies top U.S. advisors reportedly cited to the president. Chinese state-owned firms control nearly 42% of Hikvision shares. The shares traded 10% lower in the morning on Wednesday, before paring some of the losses currently trade 6% down.