Hikvision Exits Controversial Xinjiang Contracts Amid Sanctions

Hikvision has exited contracts with Xinjiang regional governments through five subsidiaries affected by U.S. trade sanctions. These contracts, started in 2017, have been terminated amid human rights abuse allegations against Uyghur minorities. Hikvision, the largest video surveillance company, has faced multiple U.S. restrictions since 2019.

Hikvision, the world's leading video surveillance manufacturer, announced on Friday that it has terminated contracts within Xinjiang, China, through five subsidiaries. This move follows the inclusion of these subsidiaries on a U.S. trade block list, known as the Entity List, last year due to their alleged role in the suppression of Uyghur and other Muslim minorities in the region.

According to a filing submitted to the Shenzhen stock exchange, the five subsidiaries will cease their business operations in Xinjiang. The contracts, which began in 2017, had been designed to last for ten to twenty years, beginning in 2018. Despite this termination, no specific reasons were provided in the filing. The subsidiaries, located across different parts of Xinjiang, were accused of assisting high-tech surveillance efforts against minority groups.

With the Chinese government's denial of human rights abuse allegations in Xinjiang, companies like Hikvision have faced mounting pressure and U.S. sanctions. The company has responded by enhancing its human rights protocols and engaging lobbyists. Hikvision's global reach continues to expand, with international sales accounting for a growing proportion of its revenue last year.

(With inputs from agencies.)