China Threatens Reducing Exports to the USA

Author: John Honovich, Published on Aug 23, 2017

The US government has launched a probe into China's alleged theft of US intellectual property.

The Chinese government has fired back, threatening to reduce exports to the US.

In this note, we examine the two government's moves, the impact of cybersecurity, and look at the potential ramifications for the video surveillance market, including Dahua and Hikvision.

*** ** ********** *** ******** * ***** **** *****'* ******* theft ** ** ************ ********.

*** ******* ********** *** ***** ****, *********** ** ****** ******* to *** **.

** **** ****, ** ******* *** *** **********'* *****, *** impact ** *************, *** **** ** *** ********* ************* *** the ***** ************ ******, ********* ***** *** *********.

[***************]

USA ***** *****

** ****** **, ****,*** ** ***** ************** ******** ** ***************** *****'* ***** *********, ****************** ***** ******* * ************** ****.

"*****’* ************ ******** ***** **** ****", * ** ***** **-** ****** * ****** ** **********:

******* *********, **** *** ************* ** ******** ******* ****** *** often *** ****** ************* ** ********** *********, **** **** ********* the ************ ******** ** ******** *********. *** ********, ************-******** ***** costs ******* ** ** $*** ******* * ****, *** ******** transfer ** ****** ** *******. ***** ******** *** **** ** that ****.

***** *** ******** *** ******** ******* ********** ****. ******* ***** have **** ***** ******* ******* *********** *** **************, ******** ************, public ******** ************, ***** ***** *** *** ******** ********** ******.

***** *** ***** *** **** *****, ** ******** ** *********** have *** **** *******.

China ******

*** ******* ********** ** ****** **** ************* *********, ******* *** own ********* ** *** "***** ***** ***** ** ******* ***** **************'* ***** *****". ** ****, ******** / ******** ******* ******* **** *** US *** ********* ** ******* *** ****** ******** ******** ** trade ************.

*******, *****'* ***** **** ** ***********, **** ** "******** ******* to *** *.*" ** **** ******** ********* ** *******-**** ********, explaining:

***** *** ******* ****** ****** ** *****, *** *.*. ****** the ******** ** ****-********* “****-**-*****” ********.

********* ** **** ******** ** *** **-***** ******** *******, ***** with ***** *** ***** ******** ******** $*** ** **** ** average.

*********** ****** ****** ** ** ********* ***** ***** *** **********, though ******** ******* ************* ********* ** *** ** ***** ***** those ********* ********.

Cybersecurity ******

*** ** *** ********** ****** ** **** ***** ******* *******'* ************* ******* **** **** ****** ** **** *, ****. ***** ****** troubling ******* ********* ** * *********** ** **** **** ****** code ** *** ******* ********** **** *** ** *********. ********** ********** *** ******** ****** "******** ** ********* *****'* ********** ***********, ******** ********, ****** interest, ** **** ** *** ****** *** ********* ** ********". On *** ***** ****, *** ********* *** *** ******* ********** to ***** **** ********* *** *********** ******* (*.*., ******* *****'* own *********) ** *** ******* ***** ******** ***** ** * concern ** **** ******* *********.

*****, ** ******, *** *** ****** **** ** *** ******* company ** *****.

Hikvision / ***** *****

***** *** ******* ********** ******, ********* ***** ************* ********, ***** companies ********* ******** *** ********** ******* ** ********* *** ********* as **** *** ***** ********** ******* (****** ** *********'* ****, one **** ** ****** ************* ** *** ******* **********, * ***** **** **** ********* ******* / ********).

***** ********* ** ****** ******* ***** ******* ************* ****** (********** given ***** *** *********'* **** ***** *******) ***** ** * negative *** ***** ***** ************ *************. ** **********, ***** *** both **** ** **** ** ****** ** ******, **** ******** conscious ***-*****, *** **** ******** ***** ***** ** **** ****** winning ******** **** **** *****.

*******, *** ******* ********** ***** ******* **** ******** **** ******* to *** ** *** *** ** ******* ***** ************ ********. Given ***** **** *************, *****'* ******* **** *********, *** ******* government's ****** ** ****** ****, ***** ******* ****** ******** *** actually ** ***** ** ***** ** *** ****** ******** **** the **, ** *** ******* ********** ****** ** ******* ****. Better ** **** **** ** **** ******** ** ********, *** now ************ ***** ******* ** ******* ************* (*.*.,***-*******), **** ** ***** ***** **** ** ** ******.

Impact - ***** ** ** *****

*** ******* ******* ************* ** *** ** *************, *** **** the *********** ******** ** *** ***** ************** *** *** ******* volatility ** *** ** ********* ***********, ** ***** ** **** to ******* **** *** ** **** ******** ** ** *****, following **** *************.

***********, ******, ******* ************* ********* ** *** **, ***** ***** own *****, ** **** ************ *** ** **, ***** ** hurt ** *** ***** *** ** ****** ******* ***** *** ethics ** ******** ** ***** **** *******.

Comments (11)

* **** *****'* *****. ***** ***** ** **** ******* ********? I **** ***** **. ***** ** **** *** ***, ***, but * ***** *** **** ******* *** *****. ** ***** does ****** *******, **** ***** ** * ***** *** ******** manufacturing. * **** ***** ** **** ******.

** ***** **** ****** *******, **** ***** ** * ***** for ******** *************.

**, ** ***** *** *** ********, ****** ** ***** *****, etc.

** ***** ******** ** ******* *** ***** ** ****** ********** modern ************* ******** ** *** ***** ** *** **. * slowdown ** ***** ****** **** ***** ***** **** **** ***, but ** **** ** *** ***** ** ******** *********** *** many ***** ******** ****** (****** *** ******) *** ** ********** is ***** ** **** ********** **.

***** *** ** ******* ** * ***** *** ******* *** worlds *** ******* *********.

* ****** ****- ** *** **** ******* ** **** ** to ****** ****** ****** ** ******* *** ******** ******* ** a *****. *** ******** ****** ** ***** **** ******** **** Black ****** ***** ****'* ** **** ** **** *** ***** of ****** *** ***** ** ********** ****** **** **** ****** ever ** ********* **** *********.

*****, * ***** **** *** **** *** ****** (*.*. *********) cares **** ***** ******* **** *************.

*******, ** ****** *****, * ***, ** *** **** ** physical ******** ** ***** ** ****** ************* **** *** ********* by ************* (****** ******* **** *** *** ****** ** ***** businesses ** ******* **** *** ****** / ********* ** *** US **********).

****** **** *- ** ** *** ******** *********, ******* ****** and ********** **** ******** **** ******** ********* **** **** ** that ****** ** ** ***** *** ****** ** *** **** interest ** ******** ********** *** **********.

******** ********* (**** *** ****** ****** ************ ******** “**” **** one ******* *** *** ** ** ***** ***** *** **********, technological *** ******** ****) ** *** ***.******** *** ** *** ***** ********* ** ******** *********, ******* out ***** *** ******, ******* **** *** ***** **** ******, partly ******* **** *** *** ** *** ** * ****** in *** ***** *******, ********** **** ** ***** ** **********. In ***** *****, ******** ********* ** *** ******* **** ****** companies, ** *** *** ******, ** ***** ** ** ** with ******* ***** *********.

**********, ***** ** * ***** ********. **** ****** ************ *** attest ** ******* ** *** ** ****, ******* *** ******* based ************ ********** ** ***** **. * ****** ******* *** three ********* ********* ********** ** ***-******** *** ** *** ******* while ****** ******** ** *** ******* *** ******* ******, ** the ***** ** ***, ***** *** **** *** ***** **. As **** *** ****, **** **** ******* ** ** ** Mandarin, ** ***** ******* ** ******* ******* *****.

***** **** ** *** **** ***** ** *** *******, * agree **** ****. *** ** **** ***** ** **** ** they **** *** **. *** ********* *** ************************ *** *** **************. **** **** ***** **** ******* ** have ****** ****. ** **** ******* *** *** ****, ******** and ********** ******** **** **** ****** *** **** **** ******** into *** ******* *** **********. ** *** ** ** *****, the ***** **** ******.

**** ************, * ***** *** ********* ******** ** ******* *** trade *** ******** ************ ******* ***** *** *** **. ** would **** ***** **** *** ** ***** ****** ********* **** are *** ** *** ******* **********. * ***** ***** **** a **** ** ** ** ***** ** **** ** * show ** ********, ****** **** * **** ** **** ******** espionage. **’* **** ** * ********* ***********, ****** ** ******* the ***** **************’* ******** ** “******* *****”.

******* ***** ******* ** **** ** **** ** ********* ** the*************.

** *** *** ********* *** ***** ****, ******* ** ****. While *** **, ** *** ****** ********, ********* *** ***** are ***** *******, ** * ******** ******** *****, **** *** small. *** ** *******$***.* ******* *********** **** *****. ********* *** ***** ******* *** *** * fraction ** * ******* ** **** ******.

* ******* *** ***** ************** **** ***** **** ** *** goods *** ******* *********, ****** **** ******** ********, ********** ** technologies.

** *** *** ********* *** ***** ****, ******* ** ****. While *** **, ** *** ****** ********, ********* *** ***** are ***** *******, ** * ******** ******** *****, **** *** small.

* ***** **** ** ******* ******** *****, ***** ***** ************ imports *** * *** * ******** ** * ******* ** total ** *******.

*******, *** **** ** ***** *** ********* *** ******* **** / **** **** ***** *** *****. *** *******, *** ** government *** **** ****** ***** ******,*** ** **** ******** ****** ***** ***. ******** ********* **** * ***** ******** ***** ******* *** spotlight ** ************ *********, ************ ********** *********** *** ******* *** **** ********** **** ****** *** ***. Any **** ******* ** ** ********** ******** **** ***** ******* barriers *** ******** ** ******* ** ****** ** *** ***** who ***** *** **** ** * *** ****.

... *** **** ** ***** *** ********* *** ******* **** / **** **** ***** *** *****.

**** *****. ******** **** *** ** ********** ***** **** ****** direct ******, *** ******** ****** ***** ** *** **** **** larger ***-***** ******* ** ********* **** ********** **** ******* ********** owned *********.

**** ********* ***** *** ******* ****** *** ***** ******* *** and *****.

**** **** *** *** **** **** **** ***-******** ***** ********? I ****** *** **** *********** *** ******* **** ** ******* has: ***** *** ******* ****. ** **** *****, ***** ****** on ****** *** ******* ***** ** * **** ***** ********* knock *** ******** ****** * **** *** ******* * ** actually ******* ***. ** ********** ** *** ********* *** ** are ** ********** *********** **** *** ******* ***** ******* ** best ********** ** **** *****:

***** $*** ** *** ***** ****** *** **** ** *** population, * ** ***** ******** **** *** ******* ******* *** year ** **** $***. * *** ********* ****. ** ***** be ***** *********** ** *** * **** **** ********* ** see ** **** ***** ** ******* ** ***** $*** **** per **** ** ********* *** ********** ** ***** *******. * am ***** ****** ** **** ****** ** ** ******* ** get ** ***** **** ****. ***, * **** **** ********* are ***. *******, * **** ******* **** ***** ********* **** South ***** ***** **** ** *** *********** ** **** **** void *** ******** ****** **** ** **** ***** ****. *'* sure ***** * **** ******** ****** **** ***** ********* **** this, *** **** ****** ***'* **** ** **** *** ****. But, ***** ** ** ****** *** ** *** ***?

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