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.

PPP *****

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

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

*** **** ******* ******* are ****** ***** ** Xinjiang ********, *** **** of ******** ******** ** ********-******* ********. **** *****, authorities put *** * ******  [link ** ****** *********]******* all PPPs ******* ***** ******* 2017 ** ******** ******* an ********* ******. ******** found ** *** **** enough ******* ** ** finished **** ** *********, *** ***** ***** ******* Post ********. 

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

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

******* ** *** *********, the **** ** *****’* biggest *** ******* ** Xinjiang may **** ** *** balance. ** ** ***** ** filing [**** ** ****** available] to *** ******** ***** exchange, ***** **** **** to “****** *** **** government **** ************” *********** had ********* *** ************** of *** $*** ******* safe ****** ******* ** Yarkant ******.

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

*** ***********’ ******* ***** in ******** *** *** ******* news ******* [**** ** longer *********] ** ******* * negative ****** ** ********’* public ******** ******. *** article ****** ** ******* analyst ******* **** *** government ****** *** * “major ******** ******” *** Xinjiang’s ***** ******** ****** in *** ***** ****, although **** *** ******* were **** *** ****** was ******** ** ** more *******. 

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

** ** ********* ** remember that *** ********* ** Xinjiang ** **** ** broader ******* ***** ** taking ** ****** **** related ** *** ********, many ** ***** *** incomplete.

***** *** ********* ***** face ******* ******* ********* since **** **** ******** *** deals *** **** ** Xinjiang *** ****** *****. For *******, ** ******* Hikvision *** * **** **** deal ** ********* ***** *** ******* yuan($****) **** ***** **,*** cameras; *** ** *****'****** ***** ******* * *** ******* yuan ($***) ******* ** Guangxi ******** **** *** Vietnam ******.

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

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

*** *** ******* *** ******** to **** ****** ****** for ********'* *******, * Muslim ******** ***** ***** rights ***************** ***** ** *******.  *** ****** ***** Congress, * ****** ***** organization, ******* ******* **** **** **** **** ***,*** ******* were ********* ** ********* "re-education" ***** ** ******** for ***** "*********** **********."

**** ****, *** ** State ******************** *********** ******* ********* ******** in *** **** *******, particularly ***** *************** ************ ******* ** ****** reporters ******* *** ***** Free ****, * ** **********-****** media ****** ****** ** *** country.

Comments (3)

Avatar

Mick Brown

05/01/18 12:23pm

No wonder they can carry such large overheads when they are propped up by such lucrative orders

will this slow their whole expansion down

Avatar

Charles Rollet

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

Hi Mick, good question. The truth is we don't really know the full effect of this, because the Xinjiang projects are suspended but it's unclear if any have been fully cancelled. However, given that both Hikvision and Dahua reported above annual growth of 30% and 40% respectively in 2017 (at the height of the Xinjiang security boom), I would wager that it's likely those figures will come down this year as Beijing cracks down on local government debt.

Avatar

Mick Brown

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

I would guess sometime dahua recruited the guy from huawei

to be their md

maybe he has been set up to be a fall guy for fu

when this is properly investigated 

he has the right credentials are huawei the owners of hisilicon 

the main chip in every dvr / camera 

also being investigated for sanctions busting in iraq

 

Read this IPVM report for free.

This article is part of IPVM's 6,541 reports, 882 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now

Related Reports

Dahua Profits Surge Due To Fever Camera Sales on Aug 25, 2020
While Dahua's overall revenue is down, driven by challenges within China, the...
US Passes Uyghur Human Rights Law Condemning Mass Surveillance on Jun 18, 2020
The US government has passed the Uyghur Human Rights Policy Act of 2020,...
Hikvision Put on US DoD "Communist Chinese Military Companies" List, Faces Risk of Presidential Sanctions on Jun 26, 2020
The US DoD has put Hikvision on a list of "Communist Chinese Military...
Dahua Buenos Aires Bus Screening Violates IEC Standards and Dahua's Own Instructions on Jun 30, 2020
Dahua has promoted Buenos Aires bus deployments as "solutions that facilitate...
Uniview H1 2020 Financials Examined on Sep 08, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
Sunell is The First China Manufacturer to Market NDAA Compliance on Jul 30, 2020
Most China manufacturers are going to be impacted by the NDAA 'Blacklist...
China Dali Fever Cameras and Booming Sales Examined on Sep 11, 2020
Zhejiang Dali, one of China's original thermal technology developers, has...
Axis Exports To China Police Criticized By Amnesty International on Sep 21, 2020
Axis Communications and other EU surveillance providers are under fire from...
Honeywell Warns of Huawei, Advocates Futureproofing on Aug 31, 2020
For years, Honeywell has profited from OEMing Dahua and using Huawei...
Infinova, March Networks and Swann H1 2020 Financials Examined on Sep 02, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
Dangerous Hikvision Fever Screening Marketing In Africa on Sep 15, 2020
A multi-national African Hikvision distributor is marketing dangerously...
Faulty Hikvision Cali Colombia Fever Camera Implementation on Jul 20, 2020
The mayor of one of Colombia's largest cities has promoted a faulty Hikvision...
China General Chamber of Commerce Calls Out US Politics on Sep 24, 2020
While US-China relations are at an all-time low, optimism about relations...
Huawei HiSilicon Shortage Impacts Surveillance Manufacturers on Aug 14, 2020
Huawei acknowledged problems and challenges for its HiSilicon chip business,...
Hikvision Global News Reports Directory on Aug 13, 2020
Hikvision has received the most global news reporting of any video...

Recent Reports

New Products Show Fall 2020 continues tomorrow with Genetec, Milestone, Avigilon, Microsoft and more! on Sep 29, 2020
IPVM's sixth online show continues tomorrow and will feature New Products...
Avigilon / Motorola VS Virtual ISC West on Sep 29, 2020
ISC West has historically been so dominant that no player would think of...
Dartmouth College Deploys K3 Temperature Screening on Sep 29, 2020
While Dartmouth College has a $6+ billion endowment, the College has bought...
Hanwha AI Object Detection Tested on Sep 28, 2020
Hanwha has added detection and classification of people, cars, clothing...
Favorite Access Control Manufacturers 2020 on Sep 28, 2020
200+ Integrators told IPVM "What is your favorite access control management...
OnTech Smart Services Partners With Google and Amazon To Compete With Integrators on Sep 25, 2020
A pain point for many homeowners to use consumer security and surveillance is...
The Future of Metalens For Video Surveillance Cameras - MIT / UMass / Immervision on Sep 25, 2020
Panoramic cameras using 'fisheye' lens have become commonplace in video...
Hikvision Sues Over Brazilian Airport Loss on Sep 24, 2020
Hikvision was excluded from a Brazilian airport project because it is owned...
China General Chamber of Commerce Calls Out US Politics on Sep 24, 2020
While US-China relations are at an all-time low, optimism about relations...
Verkada Disruptive Embedded Live Help on Sep 24, 2020
Call up your integrator? Have someone come by the next day? Verkada is...
IP Networking Course Fall 2020 - Last Chance - Register Now on Sep 23, 2020
Today is the last chance to register for the only IP networking course...
Drain Wire For Access Control Reader Tutorial on Sep 23, 2020
An easy-to-miss cabling specification plays a key role in access control, yet...
Norway Council of Ethics Finds Hikvision Human Rights Abuses "Ongoing" on Sep 23, 2020
Hikvision's involvement in "serious human rights abuse" in Xinjiang is...
IPVM Camera Calculator User Manual / Guide on Sep 23, 2020
Learn how to use the IPVM Camera Calculator (updated for Version 3.1). The...