At Dahua Technology, we design our products, services and solutions to help make the world safer and more secure. Used appropriately, our technologies enable families, businesses and law enforcement services to detect and respond to safety and security risks more quickly, accurately and effectively than ever before. They can also provide value-add beyond security, including enabling cities, businesses and other organizations to incorporate the visual data captured on our cameras as part of their “smart” solutions for everything from reducing traffic congestion, wildlife monitoring, tracking waste streams, to enhancing sales at retail outlets.
At the same time, like all security tools, our technologies are subject to abuse if used inappropriately or illegally to target individuals or communities, or to invade people’s privacy. Ultimately, no security solutions company can fully control how its technologies are used by end users — we need and expect our end users to comply with all applicable local, national and international laws, regulations and conventions, just as we do. At the same time, we accept our responsibility to design our technologies in ways that mitigate the risk of abuse and maximize the likelihood of appropriate use. This includes a commitment to never develop solutions to identify a single ethnic, racial or national group. That commitment extends to every market in which we operate, anywhere in the world.
Law enforcement are among our end users in many of the markets we serve. In all instances, we expect law enforcement end users to use our products appropriately. At the same time, and contrary to allegations that have been made by certain media outlets, Dahua Technology has not and never will develop solutions targeting any specific ethnic group.
We do not make policy for any country. We are a publicly traded corporation that exists to serve our fiduciary duty to our shareholders and our corporate responsibility to our customers, employees and other stakeholders.
Central to those efforts is our commitment to the highest standards of data security. Our company has developed and rigorously applies industry best practices related to data protection in all of our solutions and products. In specific regard to the PRC, we have never been asked to share data from a customer outside the PRC with any entity or individual inside the PRC and would decline to do so if asked.
Despite these commitments, we understand that due to the state of relations between the U.S. and China, there may be certain specific limitations on Dahua’s ability to source component parts and technology from the U.S., and on the purchase of our products in the U.S. market for the time being. In particular, Dahua Technology was one of many China-based corporations placed on an Entity List by the U.S. Government, and was named as one of the “Covered Entities” under the NDAA 2019. Neither of these lists prohibit U.S. individuals or businesses from transacting with Dahua Technology. Rather, our inclusion on these lists restrict Dahua from sourcing component parts and technology from the U.S. for inclusion in our products, and restricts the ability of U.S. Government entities or those who are funded by the U.S. Government from purchasing our products. In 2021, the FCC voted to consider proposed rules, that have not been enacted at this time, relating to equipment authorizations for certain devices from certain companies that are on the “Covered List,” including Dahua Technology. While these actions do create a burden for the company, Dahua has developed plans to avoid supply chain disruptions and our private sector business in the U.S. remains stable.
To be clear, Dahua Technology flatly denies the allegations implied by our inclusion on the Entity List or the NDAA 2019, and submitted two comment letters addressing these and other issues in response to the FCC proposal. Nevertheless, we respect the decision of the U.S. Government in this regard and are committed to complying with the limitations imposed on us.
Despite these limitations, going forward, we are committed to growing our presence in the U.S. market. We believe that our products, services and solutions can play a meaningful role in helping the American private sector enjoy the enhanced safety and security our world-leading technologies offer, while fully complying with U.S. law and respecting American values. Our approximately 100 U.S.-based employees are working tirelessly on behalf of distributors, integrators and end-user customers around the country to fulfill that vision. And our hope is that, over time, the U.S.-China relationship will improve and some of the limitations currently imposed upon us may be lifted. Until then, we will do everything we can to earn the trust of our U.S. stakeholders. Dahua will always be open to a reasonable, fact-based dialogue on all issues of concern.