USA bans trade with Chinese security bureaus, firms

Right groups say China has detained around one million Uighurs and other Muslims in re-education camps in western Xinjiang region

China said the United States should stop interfering in its affairs.

The move, which was announced after USA markets closed, came on the same day negotiators from the US and China began working-level preparations for high-level talks due to begin Thursday in Washington. Shares in Ambarella fell 12 percent in after hours trading on the news.

The timing of the move, just a few days ahead of the latest talks aimed to end the "good and easy to win" trade war with China, now in the better part of its second year, might seem a bit inflammatory, but the United States government is clear that this has everything to do with national security and nothing to do with the trade war.

Megvii said it strongly objected to being placed on the blacklist and that it required its clients not to weaponize its technology or use it for illegal purposes.

To that effect, eight technology companies have been added to the Entity List - including Dahua Technology, Hikvision, IFLYTEK, Megvii Technology, Sense Time, Xiamen Meiya Pico Information Co.

Megvii, an AI startup backed by e-commerce conglomerate Alibaba Group Holding, filed plans in August for an initial public offering in Hong Kong.

China has faced growing condemnation for its treatment of Uyghur Muslims and other Muslim minorities, with numerous reports stating that Chinese authorities have been tracking the movements of these people.

In August, the USA banned federal purchases of telecommunications equipment from Huawei along with four other Chinese companies, claiming they posed a threat to USA national security interests as spies of the Chinese communist party.

Hikvision and Dahua, listed on Chinese stock exchanges, suspended trading on Tuesday, while Shanghai-listed Iflytek closed down almost 3%.

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The Trump administration placed eight Chinese technology giants on a USA blacklist on Monday, accusing them of being implicated in human rights violations against Muslim minorities in the country's far-western region of Xinjiang.

IFlytek fell 2.7 per cent and Xiamen Meiya lost 1.8 per cent on Tuesday as investors factored in their limited exposure to overseas markets and the potential for the US action to speed up restructuring, analysts said. "The measures taken by China to eliminate extremism from the roots are fully in line with Chinese law and worldwide practice", he said.

Hikivision didn't immediately respond to a request for comment.

He also said China would take steps to "safeguard its interests" and denied that the government abused human rights in the far west region of Xinjiang.

Hikvision, officially known as Hangzhou Hikvision Digital Technology Co Ltd, with a market value of about $42 billion (34.1 billion pounds), calls itself the world's largest video surveillance gear maker. The Huawei listing hurt many of its US suppliers that depended on the world's largest telecommunications company for revenue and made it hard for Huawei to sell new products. It added that it hadn't earned revenue from Xinjiang in the first part of the year, and the impact on its business from the designation was minimal.

Chinese artificial intelligence pioneer iFytek Co said on Tuesday that the ban will not have a significant impact on its daily operations as most of its core technologies are self-developed. On Monday, Trump said he was hoping for a "humane solution" in a city where protests have grown increasingly violent.

IFlytek said in a statement Tuesday that being barred from doing business with us firms won't have a serious impact on its "daily operations". "It now looks less likely".

Speaking to reporters at the White House on Monday, President Donald Trump said "my inclination is to get a big deal".

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