Massive China Xinjiang Security Project Spending At Risk

By: Charles Rollet, Published on Apr 30, 2018

A Chinese government review of state-sponsored projects in Xinjiang Province could harm the bottom line of large Chinese security manufacturers, underlying the risk and key challenges of the recent rapid rise of security projects.

While IPVM confirmed Dahua and Hikvision have won over $1 billion in Xinjiang security projects in the past 2 years, these are at risk. Inside this note, we examine the factors involved.

* ******* ********** ****** of *****-********* ******** ** Xinjiang ******** ***** **** the ****** **** ** large ******* ******** *************, underlying *** **** *** key ********** ** *** recent ***** **** ** security ********.

***** **** ************** *** ********* **** won **** $* ******* in ******** ******** ********** *** **** * years, ***** *** ** risk. ****** **** ****, we ******* *** ******* involved.

[***************]

PPP *****

*** ******** *** ** Dahua *** ********* **** all ******-******* ************, ** PPPs. **** **** *********** ** ***** ***** 2014** * *** ** lower ***** ********** **** by ***** ******* ********* to **** ******* ****** infrastructure ********.

*** ** **** ******** in **********, ******* ******* that **** **** **** another ****** *** ***** governments ** ***** ****** debt. **** **** ****** schedule *** *** **** overruns. ** *** **** the ***** ***** ** PPP ******** ******* $*.* trillion **** ********, ******* announced ****-******* *** ******* to ******* *********.

*** **** ******* ******* are ****** ***** ** Xinjiang ********, *** **** of ******** ********** ********-******* ********. **** month, ************** *** * ************* *** **** ******* after ******* **** ** Xinjiang ******* ** ********* review. ******** ***** ** not **** ****** ******* to ** ******** **** be *********,*** ***** ***** ******* Post ********.

****** ***-***** ** $*** billion' ***** ** **** scrapped ** ******* ***** November **** ******* ** Xinjiang,********* ** *** ***** Economic ******, * **** ********** given **** ******** ***** up **** **** *% of *****'* ***** **********. No ************* **** ** scrapped ******** *** **** released. *** ***** ** the **** ********* ** Xinjiang ******** **** **** of *** ********'* ******** spending *** ***********, ******-*******, or ******** *******.

Dahua’s ******* ******* ** **** ** ************

******* ** *** *********, the **** ** *****’* biggest *** ******* ** Xinjiang *** **** ** the *******. ** ******* ** ******** *** ******** ***** exchange, ***** **** **** to “****** *** **** government **** ************” *********** had ********* *** ************** of *** $*** ******* safe ****** ******* ** Yarkant ******.

*** ********** ** ******* whether *** ******* **** go ******* ** ***, stating **** ***** ********** the **** ** “******* reduction ** *** ******” if ** ** ********. Dahua ********* **** ***** 1.68 ******* **** ($****) of ********** ***** **** already **** ***** ** the *******, ***** ** nearly ****-*****, ****** **** awarded **** ****.

*** ***********’ ******* ***** in ******** ****** ******* **** ********* ******* * ******** impact ** ********’* ****** security ******. *** ******* quoted ** ******* ******* stating **** *** ********** review *** * “***** negative ******” *** ********’* large ******** ****** ** the ***** ****, ******** once *** ******* **** over *** ****** *** expected ** ** **** limited.

Reforms *** **********

** ** ********* ** remember **** *** ********* in ******** ** **** of ******* ******* ***** is ****** ** ****** debt ******* ** *** projects, **** ** ***** are **********.

***** *** ********* ***** face ******* ******* ********* since **** **** ******** PPP ***** *** **** in ******** *** ****** China. *** *******, ** January ********* *** * Safe **** **** ** Xian***** ***** *** ******* yuan($****) **** ***** **,*** cameras; *** ** *****'****** ***** ******* * *** ******* yuan ($***) ******* ** Guangxi ******** **** *** Vietnam ******.

*******, ***** ******** ** the **** ** *** strictest *** *******, ** remains ******* ** **** extent *** ******* **** harm *** *********' ********** outside *** ********.

Uighurs ***** ***** ********

*** *** ******* *** unlikely ** **** ****** better *** ********'* *******, a ****** ******** ***** human ****** ********************** ** *******. *** Uighur ***** ********, * Uighur ***** ************,******* ******* **** ******** **** ***,*** ******* were ********* ** ********* "re-education" ***** ** ******** for ***** "*********** **********."

**** ****, *** ** State ******************** *********** ******* ********* ******** in *** **** *******, particularly ***** *************** ************ ******* ** ****** reporters ******* *** ***** Free ****, * ** government-funded ***** ****** ****** in *** *******.

Comments (3)

Avatar

Mick Brown

05/01/18 12:23pm

** ****** **** *** ***** **** ***** ********* **** **** are ******* ** ** **** ********* ******

**** **** **** ***** ***** ********* ****

Avatar

Charles Rollet

In reply to Mick Brown | 05/01/18 12:51pm

** ****, **** ********. *** ***** ** ** ***'* ****** know *** **** ****** ** ****, ******* *** ******** ******** are ********* *** **'* ******* ** *** **** **** ***** cancelled. *******, ***** **** **** ********* *** ***** ******** ***** annual ****** ****%*****%************ ** **** (** *** ****** ** *** ******** ******** boom), * ***** ***** **** **'* ****** ***** ******* **** come **** **** **** ** ******* ****** **** ** ***** government ****.

Avatar

Mick Brown

In reply to Charles Rollet | 05/01/18 01:25pm

* ***** ***** ******** ***** ********* *** *** **** ******

** ** ***** **

***** ** *** **** *** ** ** ** * **** guy *** **

**** **** ** ******** ************

** *** *** ***** *********** *** ****** *** ****** ** hisilicon

*** **** **** ** ***** *** / ******

**** ***** ************ *** ********* ******* ** ****

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