China Aerospace Science and Technology Co., Ltd. Second Institute and its affiliated research institutes, China Electronics Technology Group Corporation 13th Research Institute and related and subordinate units, China Electronics Technology Group Corporation 14th Research Institute and related and subordinate units, China Electronics Technology Group Corporation The 38th Research Institute and related and subordinate units, the 55th Research Institute of China Electronics Technology Group Corporation and related and subordinate units, China Technology Import and Export Group Co., Ltd., China Huateng Industry Co., Ltd., Hebei Far East Communication.
This control list is mainly related to China Electronics, and China Electronics has 8 listed companies, namely, Chuangchuang Electronics, Guorui Technology, Jiesai Technology, Taiji, Hikvision, East China Computer, Phoenix Optics. And the guardian. In addition, the list of ERC also modified the list of entities, added an export control company: Chengdu Haiwei Huaxin Technology Co., Ltd. and its subsidiaries.
Almost all of these companies are Chinese military-owned enterprises, of which Hikvision is the world's largest manufacturer of surveillance equipment. As early as May 24, the US House of Representatives passed the NDAA 2019 "National Defense Authorization" with an overwhelming advantage of 351-66 votes. The Law, which includes an additional proposal, recommends that the US government and the Ministry of National Defense and ZTE, Hainengda, Hikvision, Dahua shares and other telecommunications, video surveillance equipment companies conduct commercial transactions on the grounds of national security.
Hikvision officially issued a statement on the same day, accusing the US side of the lack of factual basis, saying that it will firmly defend the company's reputation and legitimate interests. In the end, the bill did not pass into force. And this Hikvision once again on the list Well-known, the real victims of the Sino-US trade war!
As is known to all, the Sino-US trade war has been escalating since its official opening on July 6. The Chinese Ministry of Commerce has repeatedly issued a statement condemning the US government's actions and imposing sanctions on US import trade under the 'equivalent' treaty. On July 26, Qualcomm announced The failure of the acquisition of NXP, etc., has severely damaged the 'neurality' of the US government. It has also increased the excuse that the US Department of Commerce has once again put pressure on the Chinese government. The blockade of 44 military enterprises is exactly the performance of the US government's revenge!
In fact, most of Hikvision's business in the United States is commercial, family and other applications. The government and the military account for a very low proportion. The entry into the sanctions list is a bit of a 'lie gun'. However, some analysts say that even The US Department of Commerce has blocked Hikvision, and its impact will not be great, because at present, more than one-third of the market share in China's security sector is occupied by Hikvision and Dahua. The current total number of global cameras is as high as 14 trillion. China's domestic security market has reached 560 billion yuan, and the industry growth rate will reach 15% in the future. It can be seen that the domestic market has occupied a large part of Hikvision's revenue source.
In addition, according to Hikvision's 2017 annual report, its domestic revenue was 29.6 billion yuan, and overseas revenue was 12.2 billion yuan. New Kenya, Uzbekistan, Hungary, New Zealand, Czech Republic, Malaysia, Germany were newly established. The company has established new offices in Indonesia and Vietnam, with 37 overseas branches, 106 overseas service points, 77 authorized repair centers, and one-third of Hikvision's profits in the overseas market. Only part of its overseas market, domestic business is still the focus of Hikvision.