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

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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.

14 reports cite this report:

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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...
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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
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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...
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