Hikvision Chinese Government Origin And Control

Author: John Honovich, Published on Aug 29, 2016

Hikvision originated from a Chinese government research institute.

This is uncommon in the West but frequent in China. Hikvision was founded from the Chinese government's "No. 52 Research Institute", one of dozens of research institutes that the Chinese government has founded in various electronics / technology domains.

Indeed, to this day, as financial records show, the Chinese government remains the 'controlling shareholder' of Hikvision. By contrast, Hikvision's PR organization obscures their origin and downplays the government ownership as just one of many 'shareholders' rather than the controlling one it is.

CETC

The Chinese government division that founded Hikvision is the China Electronic Technology Corporation Group (CETC), which they explain "is made up of 58 member units and 8 listed companies." Originally, Hikvision was one of the member units, as one of numerous research institutes. Later, it was promoted to a CETC 'listed' company, when the Chinese government listed Hikvision in the Shenzhen stock exchange.

Connection Government / 52nd / Hikvision

The Hikvision 2015 annual report (p. 62) makes clear the connection, explaining that Hikvision's chairman is a Communist Party Secretary:

Chen currently serves as the head of 52nd Institute, the chairman and the Communist Party secretary of China Electronics Technology HIK Group Co., Ltd. (中电海康集团, CETHIK) and chairman of the Company [Hikvision]

Hikvision Government Ownership and Control

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

However, Hikvision obscures their origin and ownership by stating:

42% of the company is jointly owned by CETHIK Group and CETG No. 52 Research Institute, both are state-owned enterprises.

Knowing Hikvision's origin makes clear the reference to CETG No. 52, the government research institute that founded Hikvision. Also, CETHIK, as the chairman's description above indicates, is another division within the government-run China Electronic Technology group that oversees 'HIK' / Hikvision.

Controlling Shareholder - China Government

Most importantly, Hikvision's own financial report (p. 56) confirms that they are still, to this day, controlled by the Chinese government through CETC:

Foundation / Ownership / Funding

Hikvision has been a division of the Chinese government from the beginning. They have evolved over time, including the new $6 billion of government funding, but their origin reflects their continued reality as a division of the Chinese government.

Quiz

See how well you know the relationship between Hikvision and the Chinese government with this 5 question quiz.

17 reports cite this report:

China Threatens Reducing Exports to the USA 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...
US Army Bans Chinese DJI Drones on Aug 08, 2017
The US Army has issued a ban on Chinese-made DJI drones. A US Army memo obtained by sUAS News references a classified document from the Army...
Hikvision USA Hires VP of Business Development on Jul 05, 2017
Hikvision USA is expanding again, this time in its drive to move up market to larger integrators and end users. In this note, we analyze...
US Air Force Cancels Hikvision RFQ on May 01, 2017
The US Air Force has cancelled an RFQ for Hikvision video surveillance, following IPVM notifying the Air Force that Hikvision products are made in...
'Dirty': Hikvision Attacks Genetec on Feb 20, 2017
Hikvision is angry at the growing public awareness that Hikvision is owned by the Chinese government. They took aim at Genetec,...
Hikvision Pledges 'Never' 'Backdoors' on Jan 27, 2017
With criticisms rising, Hikvision has gone on the record publicly declaring: Hikvision never has, does or would intentionally contribute to...
Dahua UnFavorability Results on Jan 19, 2017
Dahua, the mega-Chinese surveillance manufacturer not primarily owned by the Chinese government has been trying to break out of the shadow of...
Hikvision New R&D Base To Create 10,000+ Jobs, Says Chinese Government on Jan 10, 2017
Hikvision has secured a major new China government partnership.  In this note, we examine the official statement from the Chinese government and...
Hikvision Most Polarizing Favorability Results on Jan 05, 2017
Pro or con, integrators have an opinion on Hikvision. Hikvision scored, by far, the lowest neutral levels on IPVM's favorability results,...
Hikvision Removed From US Embassy on Nov 22, 2016
Hikvision cameras have been removed from the US Embassy Afghanistan and a procurement for more Hikvision cameras has been cancelled, after IPVM's...
Top Manufacturers Gaining and Losing 2016 on Nov 21, 2016
Hikvision has been the top gaining manufacturer in IPVM's annual integrator survey the past 2 years (see 2015 results and 2014 results). Can they...
Hikvision CEO Admits Hikvision China State-Owned Company on Oct 06, 2016
Hikvision's CEO admitted that Hikvision is a China state-owned company, during a 2015 visit to Hikvision from Xi Jinping, the General Secretary of...
Undercover Investigation Into Hikvision on Oct 03, 2016
An undercover investigation into Hikvision's HQ was conducted by a leading UK newspaper, the Daily Mail, revealing how Hikvision's video...
Times Investigates Hikvision's Chinese Government Control on Sep 16, 2016
The Times of UK, founded in 1785 with 1.6 million daily readers, has published a 2 part investigation into Hikvision's government...
Dahua: "We're Not Owned By The Chinese Government" on Sep 15, 2016
Discover the Dahua Difference. This was Dahua's theme for ASIS 2016. They were quite clear with their response to our question:  How is...
US Embassy Requires Hikvision Cameras on Aug 29, 2016
The US Embassy in Kabul Afghanistan has required only Hikvision cameras in a new US federal government bid. However: Hikvision was founded...
Hikvision And The Chinese Government on Dec 07, 2015
Here are the facts about Hikvision's China government ownership. #1 Fact - Hikvision CEO Admits China Government Ownership In the China...
Comments (31): PRO Members only. Login. or Join.

Related Reports on China

Avigilon Touting 'Made In America' on Sep 18, 2017
Canadian manufacturer Avigilon, who completed a US manufacturing facility in 2015, is now running a marketing campaign touting 'Made In America',...
Dahua USA President Out, South American President Takes Over on Sep 11, 2017
Dahua's South American President has taken over Dahua North America as well. This is Dahua's third North American head in 2017. Will this one...
China Threatens Reducing Exports to the USA 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...
US Army Bans Chinese DJI Drones on Aug 08, 2017
The US Army has issued a ban on Chinese-made DJI drones. A US Army memo obtained by sUAS News references a classified document from the Army...
Hikvision USA Head of Cybersecurity Exits on Jul 18, 2017
Hikvision USA's Head of Cybersecurity has exited the company. In this note, we review the move, share Hikvision's feedback and examine the...
Hikvision Distributor Says Hikvision "Top Rated Yet Most Hated" on Jul 12, 2017
The CEO of 2M Solutions, a distributor selling Hikvision cameras under their own as well as Hikvision's brand has publicly declared Hikvision to be...
Best Manufacturer Perks on Jul 07, 2017
A decade ago, the best manufacturer perk was likely a trip on the Pelco jet: But the Pelco jet is long, long, long gone. What types of perks...
Distributor Favorability Ranked (North America) on Jun 29, 2017
  What North American security / surveillance distributors do integrators favor the most? The least? 150 integrators rated and commented on the...
Hikvision Stock Surges - Doubling In Past Year on Jun 29, 2017
Hikvision's stock, on the China Shenzhen stock exchange, has more than doubled in the past year, vaulting the company's worth to an astounding (for...
Hikvision: IPVM Is "Destined To Fail" on Jun 14, 2017
Hikvision has accused IPVM of 'cyberbullying' them, declaring IPVM 'destined to fail.' This is the 3rd anti-IPVM Hikvision post in 2 weeks,...

Most Recent Industry Reports

Anixter End User Sales Troubles on Oct 23, 2017
End user sales have and continue to be a major problem for Anixter's physical security business. Every year, according to various Anixter people,...
Assa Abloy Acquires August on Oct 23, 2017
The mega access control manufacturer, Assa Abbloy, has acquired one of the most well funded access control startups, smart lock...
Axis Q3 2017 Financial Results on Oct 23, 2017
A big issue for Axis this past quarter was their product shortage. Despite that, new Q3 numbers for Axis show solid financial results. In this...
Cisco Falling - Favorite Network Switches 2017 on Oct 20, 2017
1 major manufacturer fell and 1 outsider manufacturer gained as integrator favorites for network switches from more than 140 votes / explanations...
Uniview Recorder Backdoor Examined on Oct 20, 2017
A Chinese research group has identified a vulnerability in Uniview recorders that allows backdoor access in a method similar to the Dahua...
Hikvision Access Control Tested on Oct 19, 2017
Hikvision aggressive pricing and marketing combined with generally reliable hardware and free software has made them a major player in video...
Verkada, Silicon Valley VSaaS Startup, Targets Enterprise on Oct 19, 2017
Verkada says they are building an enterprise-class VSaaS offering, calling it "The new platform for video security". This is a departure from the...
Exacq Unbreaks Avigilon Integration on Oct 18, 2017
For nearly 4 years, Exacq had broken and effectively blocked use with Avigilon cameras, as IPVM reported in January 2014. Now, Exacq has...
Search More Important Than Live Monitoring - Statistics on Oct 18, 2017
Search is overall more important than live monitoring to integrators, according to new IPVM statistics.  The key themes found in integrator...
Axis 'Sold Out' P3707-PVE Multi-Imager Tested on Oct 18, 2017
Axis faced significant product shortages over the summer. Perhaps the most notorious and significantly sold out model was the Axis P3707-PE 8MP...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact