China’s Zhejiang Dahua Technology, a leading video surveillance equipment manufacturer, announced its decision to exit five government projects in the Xinjiang region. According to a filing on Monday with the Shenzhen stock exchange, the company and its subsidiaries will terminate these projects and manage the related asset disposal and debt resolution processes.
The projects, awarded between 2016 and 2017, include some that have been terminated prematurely and others still in operation. Dahua did not specify the reasons for its withdrawal. This development follows a similar move by Hikvision, another major Chinese surveillance company, which earlier this month disclosed its exit from contracts with five local governments in Xinjiang without offering an explanation.
Dahua’s decision comes against a backdrop of international scrutiny. In 2019, the United States placed Dahua and seven other technology firms on a trading blacklist, citing alleged involvement in surveillance and repression targeting Uyghurs and other Muslim minorities in Xinjiang. Dahua had denied the allegations, calling the U.S. action baseless, while China has consistently rejected accusations of human rights abuses in the region.
The Chinese government has also criticized companies for removing Xinjiang-related firms from their supply chains. The exits by Dahua and Hikvision raise questions about the broader implications for businesses operating in the region amid ongoing geopolitical tensions.
Author’s Opinion
Dahua Technology’s withdrawal from Xinjiang projects underscores the mounting pressure on companies navigating global scrutiny over human rights issues. While the firm has avoided stating its reasons, the move aligns with a growing trend of businesses distancing themselves from controversial operations to mitigate reputational and regulatory risks. This decision raises questions about the balance between market interests and ethical considerations, a challenge that more companies operating in sensitive regions may face in the future.
