US equity futures are sliding as Asian markets open after a NYTimes report that the Trump administration is considering limits to a Chinese video surveillance giant’s ability to buy American technology.
Hangzhou Hikvision Digital Technology, a company controlled by the Chinese government, is now the world's largest supplier of video surveillance equipment, with internet-enabled cameras installed in more than 100 countries.
The move would effectively place the company on a United States blacklist, and as NYT notes, it also would mark the first time the Trump administration punished a Chinese company for its role in the surveillance and mass detention of Uighurs, a mostly Muslim ethnic minority.
And this escalation has sparked selling in stocks...
Congress and the administration have responded with other measures that may clamp down on Hikvision’s business. Congress included a provision in its 2019 military spending authorization bill that banned federal agencies from using Chinese video surveillance products made by Hikvision or Dahua.
The Trump administration is also considering imposing sanctions on specific Chinese officials known to play critical roles in the surveillance and detention system in Xinjiang. These sanctions would be imposed under the Global Magnitsky Act. The highest-ranking official being considered for this type of targeted sanction is Chen Quanguo, a member of the party’s Politburo and party chief of Xinjiang since August 2016.