HANGZHOU Hikvision Digital Technology Co. said yesterday a decision by the U.S. Government to place it on a trade blacklist could have a short-term impact on the video surveillance company’s performance.

Hangzhou Hikvision was one of eight Chinese firms included on an expanded U.S. trade blacklist Monday which has escalated tensions ahead of high-level trade talks in Washington this week.

The action, also directed at top Chinese AI startups SenseTime Group Ltd. and Megvii Technology Ltd., bars them from buying components from U.S. companies without approval from the U.S. Government.

Hangzhou Hikvision is highly confident in its long-term prospects as the firm has been making preparations for being blacklisted over the past two years, its general manager Hu Yangzhong told reporters, adding that the Shenzhen-listed firm had reduced its reliance on U.S. components.

Hangzhou Hikvision has not been allowed to sell to U.S. federal government agencies since mid-August due to a law that blocked five Chinese firms.

John Honovich, founder of surveillance video research company IPVM, has said Hangzhou Hikvision uses Intel Corp., Nvidia Corp., Ambarella Inc., Western Digital and Seagate Technology as suppliers. (SD-Agencies)