In the News: Dahua US Exit; HK Listing Boost; and China Sci-Tech Funding

Credit: Lewis Tse Pui Lung/Adobe Stock

Sanction-hit Dahua Exits US Market

Chinese surveillance camera maker Zhejiang Dahua has sold its remaining fully owned subsidiary in the U.S. after being hit with sanctions over the years, Nikkei Asia reported.

In its latest annual report, Dahua revealed that it has sold all its shares in Dahua Technology USA to Central Motion Picture USA, a unit of privatized Taiwanese film and visual content producer Central Motion Picture Corp., for $15 million. The agreement was signed on Jan 3 and was completed within a few weeks.

Although Dahua did not specify why the sale took place, the company has been slapped with restrictions by the U.S. government amid the U.S.-China tech war. Under the National Defense Authorization Act (NDAA) of 2019, Dahua was banned from contracting with U.S. federal agencies in 2020. Dahua was also placed on the Entity List in October 2019 under the Uyghur Forced Labor Prevention Act (UFLPA), which requires it to obtain government approval before buying parts and components from U.S. firms.  In 2021, Dahua was deemed by the Federal Communications Commission to "pose an unacceptable risk to U.S. national security or the security and safety of U.S. persons." A year later, the Pentagon designated Dahua as a "Chinese military company."