US regulators are stepping up their tough stance against Chinese makers of spy cameras and other hardware.
US regulators are stepping up their tough stance against Chinese makers of spy cameras and other hardware. By turning an old book, however, Washington is diverting focus from the future and undermining America’s ability to remain a global technology leader.
The Federal Communications Commission on Thursday proposed a ban on the use of certain telecommunications products and other electronic equipment made by Chinese companies, including one of the world’s largest manufacturers of surveillance cameras. world, Hangzhou Hikvision Digital Technology Co., and Dahua Technology Co. citing alleged national security risks, also seeks to ban future U.S. sales and possibly revoke prior licenses for the device. Hikvision said it was “strongly opposed” to the FCC’s measure while Dahua called it “unwarranted.”
Attempting to phase out America’s existing electronic cameras and devices — on street corners, school grounds, and at local government facilities — will be more disruptive than proactive. For one thing, there aren’t many better alternatives, and finding new products or phasing out old ones will be a lengthy process without necessarily undoing any of the alleged damage to with privacy or security – if applicable. In some cases, such technology has been seen as a boon. In 2018, the Memphis Police Department, which purchased hundreds of Hikvision cameras in the previous decade, said the devices helped it make up to 100 arrests a year, as reported by the Wall Street Journal at the time. there.
Over the past few years, many US government agencies have tried to shut down Chinese companies through similar restrictive measures. Instead of waiting for the narrow paths of foreign sales to open up, these companies simply moved on. Now, they are making progress in other areas such as robotics, intelligent vehicle systems and detection technology, and widely deploying so-called multi-dimensional perception technology, which will improve intellectual ability. artificial for industrial and other uses.
Hikvision has found support in the country and has ramped up its research and development efforts. In its latest annual report, it noted that R&D spending was 6.38 billion yuan (about $1 billion), or 10.04% of total operating income, with costs up 16%. The company also notes that it has more than 20,000 people focused on this area and other technical services. Operating income from innovative businesses grew by nearly 40% last year, compared with about 8% for legacy technologies and equipment.
Meanwhile, Huawei Technologies Co. is consolidating its dominant position and expanding to other regions of the world, such as Africa. It has made cloud services a strategic priority, and last year, amid the pandemic, revenue from the stream grew 168%.
At this point, spending time, money, and effort trying to clear up the past, or any anxiety it might harbor, is just futile. While the US sets the global technology standard, it is still catching up in areas such as networking and fifth-generation equipment. Meanwhile, China’s state planners are on their way to building extensive 5G infrastructure, importing machinery from Japan, and building tens of thousands of base stations – the bases on which to build the next generation. next in telecommunications. It has now become a central part of China’s industrial policy over the next five years.
The real risk for the US is that Chinese companies develop another new technology on a massive scale that American manufacturers will have to pursue. Looking in the rearview mirror won’t help America get ahead.
Anjani Trivedi is Bloomberg Opinion columnist on industrial companies in Asia. She previously worked for the Wall Street Journal.
