Hikvision Government Parent Holds Communist Party Congress

Published Dec 17, 2018 14:21 PM
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The Communist Party committee of Hikvision’s government parent, CETHIK [link no longer available], held a Party Congress earlier this month where senior executives, including Hikvision’s chairman, praised Chinese leader Xi Jinping and the Chinese Communist Party.

Notably, Hikvision chairman Chen Zongnian praised Hikvision’s strict adherence to Xi and promised to build Hikvision into a “trusted world-class IoT enterprise” by strengthening “Party development” and 'military-civilian integration'.

In this note, we take a closer look at the Party Congress, including:

  • What Was Said
  • Why the Meeting Was Held
  • Other Examples of Chinese Communist Party Influence
  • Hikvision Response

Overall, the Congress offers further proof of Party influence on Hikvision at a time of intense scrutiny about the Chinese government’s control over the country’s corporations.

Hikvision Chairman Praises Party, Xi Jinping

Hikvision chairman Chen Zongnian presented a “report” he wrote about the Party Committee’s achievements and future plans, which was quoted extensively:

  • The report indicated that in the past three years, Hikvision’s party committee […] has deeply practiced the spirit of the new era of Chinese socialism led by Xi Jinping and the ideas of the Party's 19th National Congress… and has followed party leadership to integrate the strategy of ‘party development, talent-driven [promotions], and proper management’ and strengthened party leadership and enforced party development
  • “[The report recommended] following the organic integration of ‘Party development, talent-driven [promotions] and proper management’… to become a trusted world-class IoT enterprise. Stick to one major core blueprint and efficiently solve existing problems faced by party leadership based on the principles of integrating party development… and military-civilian integration.

Other Noteworthy Comments

Hu Aimin, the deputy secretary of the Communist Party committee of the CETC [link no longer available], a state-owned Chinese defense conglomerate which fully owns CETHIK, was also quoted as saying:

  • First, we must continue to study and implement Xi Jinping's new era, the ideology of socialism with Chinese characteristics, and the spirit of the 19th National Congress of the Communist Party of China.
  • [We must] effectively strengthen the party's political construction; the second is to give full play to the role of the party committee by ‘giving it direction, managing the general situation, and ensuring implementation’

Meeting Background

The Communist Party committee of CETHIK, Hikvision’s state-owned controlling shareholder whose only purpose is owning around 40% of Hikvision, held its Second Party Congress on December 6 at a hotel in Hikvision’s home base of Hangzhou, according to a CETHIK report of the event.

It was the Second Party Congress because the first Congress was held in 2015, around the time Chinese leader Xi Jinping began strengthening the role of the Party over Chinese corporate affairs. Such events are typically held every three years across China’s many state-owned enterprises.

The goal of the Congress was to “comprehensively sum up the achievements and basic experiences of the company's party committee”, according to CETHIK’s report.

Further Proof of Chinese Communist Party Influence

While Hikvision officially distances itself from its controlling shareholder, CETHIK’s Second Party Congress marks only the latest proof of the influence of the Chinese Communist Party on Hikvision, as previously reported by IPVM:

Hikvision No Comment

Hikvision declined to comment about this meeting. This is not unusual, as Hikvision systematically avoids directly addressing its Chinese government ties to media outlets.

Instead, Hikvision typically makes vague comments about how it is a commercial entity or how Westerners do not understand its ownership structure. See Hikvision’s response (“We Put Customers First”) to the WSJ investigation for one notable example.

While this may make sense in the short term, Hikvision likely cannot keep putting off such questions as worldwide concerns about Chinese government influence over tech companies amplify, most notably with the arrest of Huawei’s CFO.

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