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Hikvision to appeal Canadian court ruling upholding shutdown order

Chinese surveillance camera maker Hikvision said Tuesday it will challenge a Canadian Federal Court decision that upheld Ottawa’s order for the company to cease operations in Canada on national security grounds.

The court dismissed Hikvision’s bid to overturn the June shutdown order, siding with the Canadian government’s argument that the firm’s activities could pose security risks.

A Hikvision spokesperson rejected the claim, saying: “We remain steadfast in our position that our products and technology do not pose a national security threat, and there is no evidence that indicates they have ever presented such a risk to Canada.” The company has notified Ottawa of its intent to pursue arbitration under a 2014 bilateral investment treaty.

Hikvision’s Canadian unit employs 66 staff and sells products through local distributors. While the shutdown order blocks direct operations, it does not explicitly ban the sale of Hikvision products in Canada.

The dispute unfolds against the backdrop of worsening Canada–China relations. Ottawa recently imposed a 100% tariff on Chinese EVs and a 25% tariff on Chinese steel and aluminum, while Beijing retaliated with 75.8% duties on Canadian canola seed imports pending an anti-dumping probe.

The Hikvision case could become another flashpoint in an already fraught trade and diplomatic relationship.

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.