Falling PRC China City Project Spending Analyzed
PRC China spending on wide-ranging police video surveillance projects, known as Sharp Eyes, declined markedly by more than 50% in the past 3 years.
This drop is due to PRC government budget cuts and COVID-induced delays, along with a pivot away from large city projects to more rural ones, according to PRC media and analysts. This marks an important shift for PRC manufacturers, who have traditionally used China public security spending as an important source of revenue.
In this report, IPVM examines the decline in Sharp Eyes police projects and its impact.
Sharp **** **********
***** **** ******** (雪亮工程) **** ******** in **** ***** *****’* *** ******** authority, *** ******** *********** *** ****** Commission,******** **** ***** ************ ***** "***%" of *****’* ****** ******** *** ********** ** **** ** part ** *** **** **** **** Plan (****-****).
*** **** ******** ** "***********, ***** networked, ****** ******* *** ***** ************" video ************ ****** "** *** ******" of **********, **** ** ***** ***** committees.
Strongly **********
***** *** ********* *****-*****, ***** ****** video ************ ******** **** ********* ** cameras ***** ******** ** *******. ***** projects *** ******** ********** *** *** manufacturers, *** ***** *** ****** *** serve ** *** **** **********. *** example, *********'*$** ******* *,***-************** ***** **** ********* *****'* $* *******, *,***-************ ***** *********** (**** **** ****).
Spending ***** *******
********* ** ********* **** ******* ** *** (***** Public ********), ** ****, ***** **** *** Sharp **** ******** ***** ** ******* of ***** $*.** *** *******. **** combined **** ******* ***** **** ******** worth **** **** $*.**, *** ***** amounts ** $* *******.
**** ** **** **** * **% decrease **** ****, **** ***** **** 381 ***** **** ******** ***** $*.* billion *** ******* ***** $*.*** *** project (**** ********* ******** ***** **** $1.5m).
*** ********** **** ** *** ******** and ********** ****** ****:
** *** **** *** *****, ******** by ******* **** ** *** ************* environment, ***** **** *** *** ***** epidemic, *** ****** **** ** *** security ****** *** ****** ****.
**** ********** ******** **** **** ********* and *******, **** ******** **** **** cut ** ******, ***** ******** **** become ****** ********, *** ****** ******** have ****** ***** ********. **** *** a ****** ****** ** *** ******** industry, *** **** ********* ***********, *** also*********** ************ ******** *************.
*** ** *** *** ******** ********'* most ********* *********** *** ** * co-organizer ** *** ******* ****** **** in *****, **** (***** ****** ******** ****); ** ************************* *** ****** ***** **** ********.
"High-Growth ***** *** **** ** *** ***"
**** ******* *** ******* ******* ** analysts *** ******* ********** ** ***** 2022, *** *****, *** ****** ***** *********'* *****:
*** ****-****** ***** ** *** ******** catalyzed ** **** **** *** ***** Eyes ******** *** **** ** ** end.
*** ******* ***** ** ****** *** Sharp **** ******** (**** **%) **** 2015, ****, ****, *** ****, ******* wrote. ***** *** *** **** ***** PRC ************* ***** ********* ************ ** overseas *******.
Shift ** ******* ********, ***** *****
*** ***** **** ****** ***** *********, but ** * ***** ***** *** in **** ***** *****. "***** *** medium **** ******** *** ******** **********,"*** ******** ** ******** ****.
***** ***** ****** *** ******* *********, the ******** ** *********'* ***** **** vertical, ** ***,**** *** ********* ******** ** ***** *** ***** areas "*** **** ******* **%" ** May ****.
*** ********** ** ******* **** ****, issuing ******** ******* ****** **** (****-****)**** **** **** ******** "******* ********** capabilities" ** ******** ****** *****'* ********. Hikvision, *** *******, *** *** ****** ******* ******* ********.
**** ** **** ** * ******** push **** *** *** ********** ***** including ***** **** ** *** ***** policy *******, '******** ****** *', ** 2018,***** ***** ****** ********.
Impact ********: *** ** ** ***
***** **** *** ***** ********** ******** are ** ********* ****** ** ***** and ********** ******* *** *** ************ manufacturers, **** ********** ** ******** ****:
** ** ** ************ ** *** that ********** ******** **** ****** **** the '**** *******' ** ******** *********.
*** **** ** ****** ********** *** public ******** ******** **** ****-**** **** manufacturers **** *********, *****, *** ******* good ******* ** ******************* ********** ********* ********.
**** **** *** *** ****, **** will ********** ** * ******-**** ***** of ********* ******* ****** *** ***** companies. ** **** ******** ****-******, ********-******* PRC ************ ********* *************************** **** **** ** ******* *** servicing ******** ** ******** ******* ** the **********.
Domestic ****** **** **** ********
***** *** ******** ******** ** ***** and ********* (*.*., ** ****,** ***,********* ******* ***, ***.) **** ********* ** *** West, ***** ********* *** *** **** heavily ********* ** ******** *** ********.
******* ********, ***** *** *********'* ******* is ************ **% ****** ** *** PRC *** **% ** ***** ******* (though **** *** ****** ** *** past *** *****). ** ****, * 15% ******* ** ******** *** ***** would ****** ******* **** **** ********** shutting **** ***** ** ***** *******.
********, **** ********* **** ***** *** Hikvision's ******** ******** ** ******* *** more ********** **** *** ******* ********. Of ******, ***, **** *** *** headwinds ** *** ****, **** ** easy ** ******* *** **** ***-****, IPVM ********* **** ******** ******** *** far **** **********. **** ** * function ** ******* *********** (***** ****, Western ********* *************** ******* *** *** ******** *******) *** *** ******* **** ** these ******** ******** ******** ***** ***** and **** *******.
*** *******, *********'* ******** *** ******* have ****** **** * ****** ********** ~25% ** **** ** **** **% last ****. ***** ********* **** *** break **** *** ******* ** ******** by ******, ***** ** *** ***** size ** *** ******** ********, **** drop ** **** ********* ***** ********* driven ** ******** ********** *** *** simply ********** ** *** ****.
Future *******
*****, ***** ******* ******** *** ***** and ********* *** ****** *** ******* audiences ** ***, *** **** ** the ***'* ******** ************ ******** ** crucial ** *** ******* ******* *** positioning ** ***** ********* **** ** home *** ******.
** ******** ************ ******** ****** *****, which ** ************* ********, ****-***** *********, this ***** ******* ******** ************* *** resources ** ****** (** **** *****) overseas *** ********* *********.
*******, ** **** ** ***** * new *** ** ******* ************ ******** inside *** ***, *****, *** ********* may ** ********* ** ****** ***** overseas, ** *** ** *******.
**** * ***** ***** ** ******* with *** ******** ******* **** ***** Asian ************* (**** ***** ** ***** to ******) **** ***** **** *** years ** **** **** ******** * desire *** ************* ********* **** ****** resources.