The Financial Times (FT) reported that people familiar with the matter revealed that the United States is planning to impose sanctions on Chinese surveillance equipment maker Hikvision (Hikvision).002415-CN) to impose human rights-related sanctions, and has informed allies regarding it, a move expected to affect more than 180 countries around the world that use the company’s products.
The United States accused Hikvision of allegedly assisting the Chinese government in its crackdown on Uighurs in Xinjiang, and informed more than 180 countries that purchased its products, but the report did not specify the content of the sanctions. The U.S. Treasury Department will impose sanctions through a list of Specially Designated Nationals (SDNs) that prohibit U.S. businesses or citizens from transacting with those on the list and freeze U.S. assets.
Hikvision was originally restricted by the United States in terms of exports and investment due to violations of U.S. diplomatic and national security activities.
Both the White House and the Treasury Department declined to comment in response to media confirmation. Hikvision said potential U.S. actions needed further confirmation, and the company has always complied with the laws and regulations of the countries in which it operates.
Emily Kilcrease, a former deputy U.S. trade representative who is now a researcher at the Center for a New American Security, said tensions between the U.S. and China would escalate significantly if the U.S. added Hikvision to the SDN list.
“While human rights are a very important issue for the Biden administration, I think they will be more cautious in their approach,” she said. Emily expects Biden to see the sanctions as a move to prepare for contingencies.
The SDN list, arguably Washington’s most powerful sanctions tool, has typically been avoided during the Trump era. For example, the United States considered adding Huawei to the list in 2019, but ultimately shelved the plan.
