Hikvision, Dahua, Uniview, Tiandy Stand By Russia Sales
IPVM has confirmed that the PRC's four largest manufacturers - Hikvision, Dahua, Tiandy, and Uniview - are continuing to supply the Russian market without restrictions.
This stands in contrast to non-PRC companies, such as Axis, Hanwha, Panasonic, Motorola, IBM, and others, who halted Russia sales due to the invasion. Ukrainian officials are urging tech companies to pull out of Russia, calling Russia sales "blood money."
This poses sanctions risks due to broad US technology controls, while also deepening Russia's already strong dependence on PRC surveillance equipment.
In this report, IPVM examines PRC companies' Russia sales and the potential risks.
PRC Firms Continue Russia Sales
IPVM called the Russia offices of the manufacturers and found that:
- Hikvision Russia continues selling cameras through distributors with no restrictions
- Uniview Russia continues selling through distributors, with the rep stating there are "no restrictions nor shortages as of now"
- Tiandy Russia is selling direct with no restrictions, it said.
Dahua Russia did not respond to IPVM's phone calls or comment requests; its Russia page remains active, while one of its Russia partners continues to tout new Dahua products. Sunell, while much smaller than the above firms, also remains active in Russia with its CEO even telling IPVM "salute to Russia and Putin" in response to the invasion.
Contrast To Other Firms
No major non-PRC video surveillance manufacturer remains fully active in Russia, with Axis, Hanwha, Panasonic, Motorola, IBM, Milestone, and others halting sales (for a full overview, see IPVM's Industry Comments On Russia Invading Ukraine.)
The main exceptions have been VMS provider NetworkOptix, due to its substantial Russia dev team, and Bosch, which told IPVM it is focusing on the "welfare of our local associates".
Ukraine Official: Russia Business "Blood Money"
Mykhailo Fedorov, Ukraine's Minister of Digital Transformation, has been pushing global technology/finance firms to pull out of Russia, calling Russia sales "blood money" in tweets to Samsung, China UnionPay, etc:
This movement has been heeded by dozens of companies now pulling out of Russia including Apple, Nintendo, Sony, BP, JPMorgan Chase, etc.
PRC Refuses Sanctions
Unlike the US and Europe, the PRC has not imposed any economic sanctions on Russia in response to its invasion of Ukraine. Instead state media like Global Times has criticized the US for being "addicted to using economic sanctions" which only cause "self-harm":
The PRC has avoided any direct criticism of Russia's invasion, abstaining from a key UN vote and refusing to call it an invasion, instead using terms like "tensions" or "conflict". The PRC has also aggressively censored antiwar voices within China.
Sanctions Risk Examined
On February 25, the day Russia invaded, the White House announced US tech export sanctions that would "cut off more than half off Russia's high-tech imports." US Commerce Secretary Gina Raimondo warned Chinese firms that the US could "essentially shut down" any Chinese company continuing to supply tech to Russia.
The sanctions, described as "much broader" than usual by DC law firm Wiley, don't just affect US tech exports but also foreign tech destined for Russia, which are the "direct product" of "US-origin technology or software" or which use US components:
This means the sanctions could impact PRC surveillance equipment which uses US chips. While Dahua and Hikvision have reduced exposure to US technology due to their own sanctions, both Tiandy and Uniview use Intel chips:
- Tiandy Iran bragged about how "the heart" of its K2000 server is "designed and manufactured by intel". Tiandy holds an Intel partnership for the 'Super NVR' and is also a 'Titanium' level Intel OEM partner.
- Uniview's Smart City solution is powered by Intel Movidius chips; Uniview is also an Intel OEM 'Titanium' partner. Uniview's PC module and B800 NVR use Intel chips as well.
Intel On Sanctions Risk
Intel told IPVM it "complies will applicable export regulations":
Intel complies with all applicable export regulations and sanctions in the countries in which it operates, including the new sanctions issued by OFAC and the regulations issued by BIS.
Intel pulled out of Russia over the invasion.
Deepens Russia Reliance On PRC Gear
IPVM estimated last year that Hikvision and Dahua control over 50% of Russia's video surveillance market. This will further deepen the dominance of PRC products in Russia, making the country heavily dependent on Chinese products.
This trend is currently playing out in other electronics fields as well, for example, Chinese smartphone sales have doubled since the invasion, according to Russian business newspaper Kommersant.
PRC Companies Response
IPVM repeatedly contacted Hikvision, Dahua, Tiandy, and Uniview for this article but received no response. If we do we will update this article.
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