What happens if Trump bans Hikvision from US government entities?
This is being considered in a new profile by financial magazine Barron's: China’s Hikvision Rises as Surveillance Gets Hot.
Barron emphasizes Hikvision's Chinese government ownership:
Hikvision, as it’s called, is controversial because it is a subsidiary of China Electronics Technology Group, which is directly controlled by the Chinese government, which raises concerns that Beijing could use its products to gather information. [emphasis added]
Then, citing an analyst, concludes:
If the Trump administration bans Hikvision from selling to government entities, it will be a drag on earnings, but won’t derail Hikvision [emphasis added]
In this note, we examine Barron's analysis, the potential impact financially and operationally both to Hikvision and its competitors.