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Dahua Technology

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Zhejiang Dahua Technology Co., Ltd.
Native name
大華技術股份有限公司
Company typePublic company; partially state-owned[1] (11.67%)
SZSE: 002236
IndustryVideo surveillance
Founded2001; 23 years ago (2001)
FounderFu Liquan
HeadquartersHangzhou, Zhejiang, China
Area served
Worldwide
ProductsSecurity cameras, network cameras, HDCVI analog-to-HD solutions, NVR/DVR, PTZ cameras, fisheye cameras
Revenue$4.98 billion (2021)[2]
OwnerFu Liquan
China Mobile
Central Huijin Investment
Number of employees
+22,000 (2021)[2]
Chinese name
Simplified Chinese浙江大华技术股份有限公司
Traditional Chinese浙江大華科技股份有限公司
Transcriptions
Standard Mandarin
Hanyu PinyinZhèjiāng Dàhuá Kējì Gǔfèn Yǒuxiàn Gōngsī
Websitewww.dahuasecurity.com Edit this at Wikidata

Zhejiang Dahua Technology Co., Ltd. (commonly known as Dahua Technology) is a publicly traded company based in Binjiang District, Hangzhou, which manufactures video surveillance equipment.[3] A minority of Dahua is state-owned (11.67% as of 2023).

Dahua was founded in 2001 by former defense industry technician Fu Liquan, who serves as the company's chairman and the Secretary of its Communist Party committee.[4][5][6] As of 2021, Dahua is the second-largest video surveillance company in the world in terms of revenue, after Hikvision.[7][8]

History

Dahua was founded in 2001 by Fu Liquan and some of his former colleagues from a state-owned electronics equipment factory.[5] The company initially focused on manufacturing digital video recorders.[5] In 2008, Dahua Technology undertook its initial public offering on the Shenzhen Stock Exchange.[9] In 2018, Dahua acquired security video camera company Lorex.[10][11] By 2019, following the rollout of the Chinese government's "Sharp Eyes" surveillance program, Dahua had grown to become the second largest video surveillance company in the world.[4]

Dahua is a provider of a suite of digital Smart City products which are marketed for "Safe Cities."[12]: 80  In November 2020, Dahua won a US$9 million, 1,900-camera smart city project with the public security bureau of Jiexiu.[13] In April 2021, Motorola Solutions announced that IndigoVision, a Motorola Solutions-owned company, would no longer relabel Dahua cameras, citing U.S. NDAA and supply-chain concerns.[14]

In 2021, Best Buy, Home Depot, and Lowe's stopped selling cameras from Dahua brand Lorex due to concerns about Dahua's complicity in surveillance and human rights violations in Xinjiang.[15] The Security Industry Association, a U.S.-based trade organization representing electronic and physical security solutions providers the United States, terminated Dahua Technology's membership on 1 June 2021, citing unnamed violations of its code of ethics.[16][17] In November 2021, Dahua was named in the Secure Equipment Act as one of several entities prohibited from receiving U.S. telecommunication equipment licenses due to national security reasons.[18] During the same month, Dahua provided an electronic security system to processed food company Empresa Panamena de Alimentos (EPA) in Panama.[19] At the end of 2022, Dahua Technology entered into an agreement to sell Lorex to Taiwan-based Skywatch for $72 million. In February 2023, the company announced that the sale had been completed.[20][21][22][23]

In 2022, Dahua provided video technology for the Beijing Winter Olympics.[24]

Dahua Technology provided technical support and smart applications for Yellow Dragon Sports Center during the 2022 Asian Games.[25]

In July 2023, Dahua Technology signed an agreement with the Semper Altius School Network and the Anáhuac High School Network in Mexico, committing to supply about 2,500 video surveillance cameras in more than 60 educational institutions.[26]

Dahua was a sponsor of the 2023 Tour de Langkawi.[27] It was one of the providers of the main security systems for the 2023 Pan American Games.[28] In April 2023, Dahua designed a security project for Ibagué.[29]

In 2024, Dahua sold its shares in its U.S. subsidiary, Dahua Technology USA, to a unit of Central Motion Picture Corporation.[30]

Sanctions and bans

Australia

In February 2023, Australia's Department of Defence announced that it will remove cameras made by Dahua from its buildings.[31]

Canada

In December 2023, Quebec banned the use of Dahua technology in government.[32]

Ukraine

In June 2023, Ukraine's National Agency on Corruption Prevention declared Dahua an "international sponsor of war" for supplying dual-purpose equipment to Russia that can be used for military purposes.[33]

United Kingdom

In November 2022, the UK prohibited the use of Dahua equipment in government buildings.[3]

United States

Further information: United States sanctions against China

In October 2019, the U.S. government placed Dahua on the Bureau of Industry and Security's Entity List for its role in mass surveillance of Uyghurs in Xinjiang and of other ethnic and religious minorities in China.[34][35] The John S. McCain National Defense Authorization Act for Fiscal Year 2019 barred the use of Dahua equipment in U.S. federal contracts.[36]

In March 2021, the Federal Communications Commission (FCC) declared that Dahua services and equipment "pose an unacceptable risk to U.S. national security.”[37] That same year, Sam Biddle of The Intercept reported that the U.S. government continued to purchase Dahua-manufactured equipment post-NDAA, raising questions about the effectiveness of the sanctions.[38]

In October 2022, the United States Department of Defense added Dahua to a list of "Chinese military companies" operating in the U.S.[39]

In November 2022, the FCC imposed an "Interim Freeze Order" on Dahua Technology for national security reasons,[40]: 106  effectively barring the sale or import of new equipment made by the company.[41][42] Dahua Technology has stated that this "Interim Freeze Order" does not impact any of its existing products, nor does not prohibit it from introducing new products in the U.S.[43] Dahua Technology has remained ambiguous about whether or not it will issue a legal challenge to the FCC in the wake of its order.[43] In the wake of Dahua Technology's statement, surveillance industry publication IPVM issued a report accusing Dahua Technology of "misleading" the American public through its use of the phrase "interim freeze".[44]

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  1. ^ Dahmen, Aaron (3 April 2023). "CCTV cameras made by state-owned Chinese firms found in NZ Govt buildings, MP's home". The New Zealand Herald. Archived from the original on 11 April 2023. Retrieved 30 November 2023.
  2. ^ a b "Overview". Dahua Technology. Archived from the original on 9 February 2023. Retrieved 9 February 2023.
  3. ^ a b "UK restricts Chinese cameras in government buildings over security fears". Reuters. 25 November 2022. Archived from the original on 24 November 2022. Retrieved 25 November 2022.
  4. ^ a b Dai, Sarah (15 May 2019). "How 9/11 and China's plan for blanket surveillance created a wave that CCTV camera makers Hikvision and Dahua rode to huge success". South China Morning Post. Archived from the original on 7 December 2022. Retrieved 30 November 2023.
  5. ^ a b c Huang, Jingyang; Tsai, Kellee S. (December 2021). "Upgrading Big Brother: Local Strategic Adaptation in China's Security Industry". Studies in Comparative International Development. 56 (4): 560–587. doi:10.1007/s12116-021-09342-9. ISSN 0039-3606. PMC 8493052. PMID 34629564. The founder of Dahua was a technical cadre in a local state-owned electronics equipment factory. When he set up his own video surveillance company, he recruited its research team from the SOE.
  6. ^ Rollet, Charles (14 June 2021). "Dahua CEO Is Communist Party Secretary, Declares "Always Follow The Party"". IPVM. Archived from the original on 23 March 2023. Retrieved 30 November 2023.
  7. ^ Pao, William (18 November 2021). "2021 Security 50: the top companies in surveillance and access control". www.asmag.com. Archived from the original on 15 February 2023. Retrieved 15 February 2023.
  8. ^ Bernot, Ausma (13 February 2023). "There are 60,000 Chinese-made surveillance systems in Australia – how concerned should we be?". The Conversation. Archived from the original on 15 February 2023. Retrieved 15 February 2023.
  9. ^ Chatterjee, Sumeet; Zhu, Julie (29 May 2017). "RPT-China's Dahua Tech plans up to $1 bln Hong Kong share sale - sources". Reuters. Archived from the original on 27 July 2022. Retrieved 8 August 2022.
  10. ^ Biddle, Sam (20 July 2021). "U.S. Military Bought Cameras in Violation of America's Own China Sanctions". The Intercept. Archived from the original on 23 July 2021. Retrieved 24 July 2021.
  11. ^ Healy, Conor; Ward, Derek (20 July 2021). "Illegal Hidden Dahua and Hikvision Sales, Sellers and 'Manufacturers' Blame Each Other". IPVN. Archived from the original on 20 July 2021. Retrieved 24 July 2021.
  12. ^ Curtis, Simon; Klaus, Ian (2024). The Belt and Road City: Geopolitics, Urbanization, and China's Search for a New International Order. New Haven and London: Yale University Press. ISBN 9780300266900.
  13. ^ Cheng, Isabella (9 November 2020). "Dahua Direct $9 Million Jiexiu Small City, Big Deal". IPVM. Archived from the original on 17 July 2021. Retrieved 16 July 2021.(Subscription required.)
  14. ^ Honovich, John (19 April 2021). "IndigoVision OEMs Avigilon, Drops Dahua". IPVM. Archived from the original on 16 July 2021. Retrieved 16 July 2021.(Subscription required.)
  15. ^ Clark, Mitchell (25 October 2021). "Best Buy and Home Depot drop security cameras linked to Uyghur surveillance". www.theverge.com. The Verge. Archived from the original on 1 November 2021. Retrieved 1 November 2021.
  16. ^ "The Security Industry Association Expels Dahua". IPVM. 8 June 2021. Archived from the original on 8 June 2021. Retrieved 8 June 2021.
  17. ^ "SIA Supports Ethical Uses of Security Technology". Security Industry Association. 1 June 2021. Archived from the original on 7 June 2021. Retrieved 8 June 2021.
  18. ^ "US President Joe Biden tightens restrictions on Huawei and ZTE". BBC News. 12 November 2021. Archived from the original on 23 November 2021. Retrieved 23 November 2021.
  19. ^ "Dahua Helps Reinforce Safety at EPA Food Co". Security World Market. 26 November 2021. Archived from the original on 13 December 2022. Retrieved 13 December 2022.
  20. ^ "Dahua to Sell Lorex to Skywatch for USD $72 Million". Security World Market. 2 December 2022. Archived from the original on 2 March 2023. Retrieved 2 March 2023.
  21. ^ "Dahua Sells Off Lorex to Taiwan Company". IPVM. 28 November 2022. Archived from the original on 2 March 2023. Retrieved 2 March 2023.
  22. ^ "Dahua to sell Lorex to Skywatch for USD $72 million". Security World Market. 2 March 2023. Archived from the original on 2 March 2023. Retrieved 2 March 2023.
  23. ^ "Dahua Sells Off Lorex To Taiwan Company". IPVM. 28 November 2022. Archived from the original on 2 March 2023. Retrieved 2 March 2023.
  24. ^ "大华股份：子公司乐橙已成为杭州亚运会官方供应商". Sina (in Chinese). 8 December 2022. Archived from the original on 22 March 2023. Retrieved 15 April 2023.
  25. ^ Siyue, Quin (1 June 2023). "各场馆严阵以待、赞助商已超160家，杭州亚运备赛进入最后冲刺阶段". Jiemian News (in Chinese).
  26. ^ Cruz, E. (6 July 2023). "Dahua Technology mejora la seguridad de la Red de Colegios Semper Altius y la Red Prepa Anáhuac". Excélsior (in Spanish).
  27. ^ Zabidi, Azizul Fahmi Ahmad (6 September 2023). "MSN perkenal tiga rakan penaja rasmi LTdL 2023". Sinar Harian (in Malay).
  28. ^ "Dahua Technology y Rocktech son responsables de la seguridad de los Juegos Panamericanos". Revista Channel News (in Spanish). 2 November 2023.
  29. ^ "Cámaras con inteligencia artificial buscan fortalecer la seguridad en Ibagué". Blu Radio (in Spanish). 25 April 2023.
  30. ^ "Sanctioned Chinese security camera maker Dahua divests from U.S." Nikkei Asia. 17 April 2024. Retrieved 19 April 2024.
  31. ^ "Australian Defense Department to remove Chinese-made cameras". Associated Press. 9 February 2023. Archived from the original on 10 February 2023. Retrieved 10 February 2023.
  32. ^ Gabriel, Friedman (11 March 2024). "Chinese-made cranes used at Canadian ports flagged as security concern by U.S." Financial Post. Retrieved 13 March 2024.
  33. ^ Rollet, Charles (12 June 2023). "Ukraine Declares Hikvision and Dahua "Sponsors of War"". IPVM. Archived from the original on 12 June 2023. Retrieved 12 June 2023.
  34. ^ Shepardson, David (7 October 2019). "U.S. puts Hikvision, Chinese security bureaus on economic blacklist". Reuters. Archived from the original on 7 October 2019. Retrieved 7 October 2019.
  35. ^ Swanson, Ana; Mozur, Paul (7 October 2019). "U.S. Blacklists 28 Chinese Entities Over Abuses in Xinjiang". The New York Times. ISSN 0362-4331. Archived from the original on 15 April 2020. Retrieved 24 May 2020.(Subscription required.)
  36. ^ Honovich, John (13 August 2018). "NDAA Ban of Dahua and Hikvision Is Now US Gov Law". IPVM. Archived from the original on 22 December 2022. Retrieved 22 December 2022.
  37. ^ Shepardson, David (13 March 2021). "Five Chinese companies pose threat to U.S. national security: FCC". Reuters. Archived from the original on 12 March 2021. Retrieved 13 March 2021.
  38. ^ Biddle, Sam (20 July 2021). "U.S. Military Bought Cameras in Violation of America's Own China Sanctions". The Intercept. Archived from the original on 23 July 2021. Retrieved 14 December 2021.
  39. ^ "DOD Releases List of People's Republic of China (PRC) Military Companies in Accordance With Section 1260H of the National Defense Authorization Act for Fiscal Year 2021". U.S. Department of Defense. 5 October 2022. Archived from the original on 5 October 2022. Retrieved 5 October 2022.
  40. ^ "FCC 22-84" (PDF). Federal Communications Commission. 25 November 2022. Archived (PDF) from the original on 1 February 2023. Retrieved 15 February 2023.
  41. ^ Bartz, Diane; Alper, Alexandra (25 November 2022). "U.S. bans Huawei, ZTE equipment sales citing national security risk". Reuters. Archived from the original on 25 November 2022. Retrieved 25 November 2022.
  42. ^ Leali, Giorgio (26 November 2022). "US bans Chinese telecom gear sales over national security fears". Politico Europe. Archived from the original on 27 January 2023. Retrieved 27 January 2023.
  43. ^ a b "FCC Rulemaking Process". Dahua Technology USA Inc. 9 December 2022. Archived from the original on 15 February 2023. Retrieved 15 February 2023.
  44. ^ Healy, Conor (5 January 2023). "Correcting Dahua USA's Misleading FCC 'Interim Freeze'". IPVM. Archived from the original on 15 February 2023. Retrieved 15 February 2023.
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