Questions on the National Defense Authorization Act 2019 (NDAA)

Updated December 9th, 2022

Why was Dahua named one of the “Covered Entities” under the NDAA 2019 Section 889(a)(1)(A)?

Section 889 of the FY2019 NDAA prohibits the acquisition of certain covered telecommunications equipment and services by U.S. executive agencies and prohibits prime contractors from using certain covered telecommunications equipment and services. The statute is intended to apply to video surveillance equipment that is used for the purpose of public safety, security of U.S. Government facilities, physical security surveillance of critical infrastructure, and other national security purposes, and to apply to designated entities that the U.S. Government believes to be “owned or controlled by, or otherwise connected to, the government certain countries of concern, including China.

Dahua Technology does not believe we should be on the “Covered Entities” list under the NDAA 2019 Section 889.

We are a publicly traded technology company that complies with all applicable local and national laws everywhere we operate. We serve the interests of shareholders and deliver on our commitments to customers, employees and other stakeholders. The Chinese government does not have a controlling stake in Dahua Technology — nor does any other government. We have never worked to advance or support the interests of any government, nor against the interests of any government.

Our company does not and has not acted in ways that are contrary to the national security or public safety interests of the United States. Our company has not been involved directly or indirectly in promoting human rights violations in any country in which we operate. Dahua Technology products incorporate and adhere to industry standards and best practice regarding data security. While no security technology company fully controls how its products and solutions are deployed by end users, we design our products to minimize risks of misuse under any circumstances.

We recognize that the relationship between the U.S. and China is complex and that as a leading China-based technology company we are subject to the evolving dynamics of that relationship.

We respect the policies set by the U.S. Government and we fully abide by the restrictions entailed by being on the “Covered Entities” list under the NDAA 2019 Section 889 and other regulations that have been put in place by the Government. We continue to operate in this market within the bounds of those restrictions, and we seek to serve our customers, business partners and employees to the very best of our ability.

Does being on the “Covered Entities” list under the NDAA 2019 Section 889 mean that U.S. companies cannot do business with Dahua?

No. We are legally authorized to conduct business with any American individuals, businesses or organizations, provided that they are not part of the federal government and do not receive direct federal government funding.