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| China's AI technology companies are rising stars -- here people have their faces scanned at the World Artificial Intelligence Conference in Shanghai (AFP Photo/ HECTOR RETAMAL) |
Beijing (AFP) - The Chinese high-tech companies blacklisted by Washington over alleged ties to rights abuses are rising stars in China's ambitious drive to overtake the United States in the technology sector.
They make
surveillance cameras, facial recognition software and other technology that has
become ubiquitous in Xinjiang, the heavily policed northwestern region where an
estimated one million mostly Muslim minorities, like ethnic Uighurs, are held
in internment camps.
The eight
firms were added on Monday to a list of 28 entities that US companies are
barred from selling components to without government approval.
Here is a
look at the companies targeted:
Hikvision
One of the
world's largest suppliers of surveillance equipment, Hikvision is the poster
child of Chinese tech firms benefiting from Xinjiang's booming security
apparatus.
In 2017, it
won at least five security-related contracts totalling 1.85 billion yuan ($260
million) in Xinjiang -- including a "social prevention and control
system" featuring tens of thousands of cameras.
But the
company also has a global presence, with nearly 30 percent of its revenue last
year coming from outside China.
Hikvision
has said the US listing lacks "factual basis", and downplayed its
impact in a conference call aimed at investors and media on Wednesday.
"Currently,
the majority of US components can all be directly replaced or replaced with new
designs," said board secretary Huang Fanghong.
"If
it's necessary, we will design our own chips."
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Hikvision
is one of the world's largest suppliers of surveillance equipment
(AFP
Photo/FRED DUFOUR)
|
Megvii
An AI
company backed by e-commerce giant Alibaba, Megvii's facial recognition
technology is used across a broad range of applications in China, from
"smile to pay" mobile payments to identifying individuals for law
enforcement.
The firm
plans to launch an initial public offering (IPO) in Hong Kong but one of its
joint sponsors, Goldman Sachs, said it was "evaluating" its role in
the wake of the blacklisting.
Megvii said
the US move "reflects a misunderstanding of our company".
Only one
percent of its 2018 revenue was from projects in Xinjiang, and no revenue was
generated from the region in the first six months of 2019, it added.
In April,
the New York Times reported that several Chinese AI firms, including Megvii,
Yitu, and SenseTime, were behind software used to racially profile and track
Uighurs.
According
to media reports, former US vice president and presidential candidate Joe
Biden's son Hunter, who has been accused by President Donald Trump of
corruption, is a director at BHR Partners, a fund that invested in Megvii.
SenseTime
SenseTime
is backed by an illustrious list of investors, including SoftBank, Alibaba, and
US chipmaker Qualcomm.
Founded by
MIT alumnus Tang Xiao'ou –- a professor at the Chinese University of Hong Kong
-- the AI company develops facial and image recognition applications, such as
crowd monitoring and identity verification for lending apps.
The firm
has a research lab in Silicon Valley and is partnering with universities around
the world, including MIT, on AI research.
In an
emailed statement, MIT said it would "review all existing
relationships" with organisations added to Washington's entity list, and
"modify any interactions, as necessary".
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According
to Dahua's 2018 financial report, about 36 percent of the
Shenzhen-listed
company's revenue came from abroad (AFP Photo/STR)
|
SenseTime
said it was "deeply disappointed" by the blacklisting and would
"work closely with all relevant authorities to fully understand and
resolve the situation".
Dahua
Dahua
Technology is another leading video surveillance equipment provider with an
increasing footprint overseas and has projects in Brazil, Italy, and other
countries.
According
to its 2018 financial report, about 36 percent of the Shenzhen-listed company's
revenue came from abroad.
In August,
the US also formally banned Dahua and Hikvision, along with telecom giant
Huawei and other firms, from obtaining government contracts.
Meiya
Pico
Meiya Pico,
a digital forensics company, drew scrutiny from rights groups after security
researchers said the firm was behind "MFSocket" -- an app that
enables police to extract contacts, messages, and other personal data from
smartphones.
Yitu
Yitu Technology
has developed apps for facial and speech recognition, such as identity
authentication at banks, cancer screening, and monitoring transport hubs to
assist law enforcement.
iFlytek
Shenzhen-listed
AI firm iFlytek is one of the top speech recognition companies in China.
In 2017,
Human Rights Watch said iFlytek was working with China's public security
ministry to collect "voice pattern" samples and develop a
surveillance system that could identify targeted voices in phone conversations.
Yixin
Yixin
Science and Technology Co. Ltd is a Beijing-based security firm that sells
video surveillance, facial recognition, and counter-terrorism products.
During the
2008 Beijing Olympics, the company provided wireless surveillance systems at
bus stops to monitor for terrorist attacks.
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