Hikvision Chinese Government Origin And Control

By: 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 (though Hikvision is the Chinese government's only controlled video surveillance manufacturer). 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 overseas marketing obscures their origin and downplays 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 the 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.

Update: "Exert Significant Influence"

In an investor prospectus, Hikvision disclosed that the Chinese government, as their controlling shareholder:

will continue to be in a position to exert significant influence over our business and other matters of significance to us.

has substantial control over [Hikvision] and their interests may not be aligned with the interests of our other shareholders

may improperly control the significant business, finance and personnel of [Hikvision] by way of exercising the voting rights, which will damage the interests of [Hikvision] and its other shareholders.

This is from the investor prospectus p.33, the full paragraph below:

Not only does the Chinese government have such control, Hikvision also touts strong support from the Chinese (PRC) government as well acknowledging their 'state-owned parent' (CETC / CETHIK):

Contrary to Hikvision Marketing

To the contrary, Hikvision's overseas marketing has repeatedly portrayed Hikvision as a commercial entity simply with private and public shareholders (e.g., Security World: Hikvision responds to accusations of being a cyber security risk).

Quiz

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

40 reports cite this report:

Hikvision VP On Muslim Oppression on May 14, 2019
Hikvision has won tens of millions of dollars, at least, in direct contracts with the Chinese government that oppresses Muslims, including a forced...
Hikvision Global News Report Directory on Apr 30, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Hikvision Favorability Results 2019 on Mar 18, 2019
Hikvision favorability results declined significantly in IPVM's 2019 study of 200+ integrators. While in 2017 Hikvision's favorability was...
NYPD Refutes False SCMP Hikvision Story on Jan 18, 2019
The NYPD has refuted the SCMP Hikvision story, the Voice of America has reported. On January 11, 2018, the SCMP alleged that the NYPD was using...
"At Hikvision, We Build Trust" on Jan 03, 2019
Hikvision has joined a growing number of video surveillance manufacturers marketing their trustworthiness. In a recent trade magazine full page...
Chinese Government Increases Hikvision Ownership on Nov 12, 2018
The Chinese government - Hikvision's controlling shareholder - is increasing its ownership of the video surveillance giant amid sharp stock price...
Ban of Dahua and Hikvision Is Now US Gov Law on Aug 13, 2018
The US President has signed the 2019 NDAA into law, banning the use of Dahua and Hikvision (and their OEMs) for the US government, for US...
Hikvision Chairman Affirms China Communist Party Leadership, Celebrates Marx's Birthday on Jun 06, 2018
At a recent event commemorating Karl Marx’s 200th birthday, Hikvision Chairman Chen Zongnian stressed the importance of strictly adhering to the...
Hikvision Source Code Transparency Center Examined on May 14, 2018
Following criticism of Hikvision's Chinese government ownership and Hikvision's IP camera backdoor, the company has responded with a series of...
Hikvision Critical Cloud Vulnerability Disclosed on Apr 25, 2018
Security researchers Vangelis Stykas and George Lavdanis discovered a vulnerability in Hikvision's HikConnect cloud service that: just by...
Hikvision Hires Ex-Milestone Head To Lead Global PR on Apr 06, 2018
Hikvision has PR problems. From its failed attempt at hiring a crisis communication writer to their failed anti-IPVM blog series to the increasing...
Hikvision: Chinese Government "Exert Significant Influence Over Our Business" on Mar 28, 2018
In an investor prospectus, Hikvision disclosed that the Chinese government, as their controlling shareholder: will continue to be in a position...
Hikvision Chairman Joins China National Government (NPC) on Mar 13, 2018
Hikvision Chairman and Communist Party Secretary Chen Xongnian has joined the People's Republic of China's government - the National People's...
False Advertising: Hikvision USA Deep Learning on Feb 23, 2018
Hikvision USA is conducting a false advertising marketing campaign for their deep learning system. Hikvision USA's claim violates US FTC Truth In...
US Army Base Specifies 70+ Outdated Hikvision Cameras (Cancelled) on Feb 22, 2018
A US Army base has specified 70+ Hikvision IP cameras, a month after the WSJ reported a different Army base removed Hikvision IP cameras. While...
"Fear Mongering": Hikvision USA Cybersecurity Director Dismisses Chinese Government Ownership Concerns on Feb 16, 2018
The facts are: The Chinese government created Hikvision and is Hikvision's controlling shareholder. Hikvision's Chairman, a Communist Party...
US Embassy Ukraine Specifies Hikvision on Feb 12, 2018
The US Embassy Ukraine specified 40 Hikvision cameras in 2017 despite Hikvision being removed from the US Embassy in Afghanistan in 2016. This...
Barron's: If Trump Bans Hikvision on Feb 05, 2018
What happens if Trump bans Hikvision from US government entities? This is being considered in a new profile by financial magazine...
Chinese Government Backdoor Spies on African Union Revealed on Jan 29, 2018
For 5 years, a Chinese government backdoor was used to spy on the African Union, according to a Le Monde investigative report. As is their...
Hikvision Removed From US Army Base, Congressional Hearing Called on Jan 12, 2018
Hikvision has been removed from a US Army Base and a US congressional committee is planning a hearing on cybersecurity risks and specifically,...
Hikvision China Criticizes The WSJ on Nov 15, 2017
Hikvision, through the Chinese government's authoritative news service, has criticized the WSJ investigation into Hikvision. In this...
WSJ Investigates Hikvision on Nov 13, 2017
The Wall Street Journal (WSJ) has released a detailed investigation into Hikvision's government ownership and cybersecurity problems, hitting the...
Hikvision Admits Backdoor 'PR Issue' on Oct 24, 2017
Hikvision is admitting a problem. The backdoor itself is evidently not the problem for them. The problem, according to Hikvision, is a public...
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 Favorability Results 2017 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 2017 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 Afghanistan 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" 2016 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 (30) : PRO Members only. Login. or Join.

Related Reports

Security / Privacy Journalist Sam Pfeifle Interview on May 24, 2019
Sam Pfeifle is best known as the outspoken former Editor of Security Systems News. After that, he was publications director at the International...
US Considers Sanctions Against Hikvision and Dahua on May 22, 2019
The US government is considering blacklisting "up to 5" PRC surveillance firms, including Hikvision and Dahua, Bloomberg reported, with human...
Dahua USA Celebrates 5 Years of Errors on May 21, 2019
Dahua USA is, in their own words, 'celebrating' 5 years in North America or as trade magazine SSN declared: Dahua Technology finds success in...
Amazon Ring Public Subsidy Program Aims To Dominate Residential Security on May 20, 2019
Amazon dominates market after market. Quitely, but increasingly, they are doing so in residential security, through a combination of significant...
Inside Look Into Scam Market Research on May 17, 2019
Scam market research has exploded over the last few years becoming the most commonly cited 'statistics' for most industries, despite there clearly...
Trump Signs 'Huawei Ban' - Executive Order Targeting Foreign Adversary Technology on May 16, 2019
US President Donald Trump has signed an executive order targeting technology provided by 'foreign adversaries', in what is widely being called a...
China PRC Government New National Video Surveillance Standards on May 14, 2019
The People's Republic of China (PRC) government has released a new set of overarching standards for authorities to follow when they install video...
Vivotek Talks About Taiwan, China, Bans, AI And Business Development on May 10, 2019
Vivotek, Taiwan's biggest manufacturer by revenue, did not have a booth at Taiwan's Secutech 2019 (which we are covering). However,...
10 Facial Recognition Providers Review (Secutech) on May 09, 2019
Adding to our 19 Facial Recognition Providers Profiled report from ISC West, IPVM focused on facial recognition technology for our Day 2 coverage...
Verkada False Allegations Against Avigilon Exposed on May 08, 2019
Verkada has leveled false allegations against Avigilon, as part of their aggressive marketing tactics against the 'dinosaurs' in the 'ancient'...

Most Recent Industry Reports

NJ Law Requires Apprenticeship For Public Works Integrators on May 24, 2019
Few integrators do a formal apprenticeship program. However, now a NJ law is requiring any integrator on public works projects (such as state...
Security / Privacy Journalist Sam Pfeifle Interview on May 24, 2019
Sam Pfeifle is best known as the outspoken former Editor of Security Systems News. After that, he was publications director at the International...
Verkada Video Quality Problems Tested on May 23, 2019
Verkada suffers from numerous video quality problems, not found in commercial IP cameras, new IPVM testing of Verkada vs Axis and Hikvision...
Average Frame Rate Video Surveillance 2019 on May 23, 2019
What is the average frame rated used in video surveillance systems? In IPVM's 2011 statistics, the average was 6-8fps increasing to ~10fps in...
Access Control Job Walk Guide on May 22, 2019
Significant money can be saved and problems avoided with an access control job walk if you know what to look for and what to ask. By inviting...
ASCMA / Monitronics Declares Chapter 11 Bankruptcy Plan on May 22, 2019
Monitronics is entering into Chapter 11 bankruptcy. The company, also called Ascent Capital Group Inc., aka ASCMA, aka Brinks Home Security,...
US Considers Sanctions Against Hikvision and Dahua on May 22, 2019
The US government is considering blacklisting "up to 5" PRC surveillance firms, including Hikvision and Dahua, Bloomberg reported, with human...
Dahua USA Celebrates 5 Years of Errors on May 21, 2019
Dahua USA is, in their own words, 'celebrating' 5 years in North America or as trade magazine SSN declared: Dahua Technology finds success in...
Axis ~$150 Outdoor Camera Tested on May 21, 2019
Axis has released the latest in their Companion camera line, the outdoor Companion Dome Mini LE, a 1080p integrated IR model aiming to compete with...
Covert Facial Recognition Using Axis and Amazon By NYTimes on May 20, 2019
What if you took a 33MP Axis camera covering one of the busiest parks in the US and ran Amazon Facial Recognition against it? That is what the...

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