China’s Dahua Technology to Exit Projects in Xinjiang

Zhejiang Dahua Technology (002236.SZ), a major Chinese video surveillance equipment maker, announced on Monday that it and its subsidiaries will terminate or exit five projects in China’s Xinjiang region. The projects, which were awarded between 2016 and 2017, include both terminated contracts and those still in operation, according to a filing with the Shenzhen stock exchange. Dahua confirmed it would cease operating the projects and initiate asset disposal and debt resolution procedures, but did not provide a specific reason for the withdrawal.

This move follows a similar decision by Hikvision (002415.SZ), another Chinese surveillance camera manufacturer, which also exited contracts with five Xinjiang local governments earlier this month, without disclosing the reasons.

Dahua’s exit comes amid heightened international scrutiny. The U.S. government added Dahua to its trade blacklist in 2019, accusing the company of involvement in “repression and high-tech surveillance” against Uyghur Muslims and other minority groups in Xinjiang. Dahua has consistently denied these allegations, arguing that the U.S. decision was not based on factual evidence. The Chinese government has also rejected claims of human rights abuses in the region and criticized companies that sever ties with firms operating there.