Photo: IC

Chinese companies on Tuesday expressed strong opposition toward a new US decision to place Chinese entities on a blacklist, saying such a move "lacks factual basis" and will eventually bring a negative impact to the US economy.

The US decision was announced just days before high-level Chinese and US officials are due to meet in Washington to hold a new round of trade talks. Such a move is typical of the Trump administration's tactics for trade talks - negotiations plus sanctions, aiming to ask for more during bilateral discussions, a Chinese expert said.

The US said on Monday (US time) that it had added 28 Chinese organizations to a blacklist due to concerns over their roles in human rights violations in Northwest China's Xinjiang Uyghur Autonomous Region, the New York Times reported.

Hikvision, Dahua Technology, Megvii Technology and iFlytek Co are among eight commercial groups listed, which focus on facial-recognition and AI technology. The Xinjiang Public Security Bureau and 19 smaller government agencies have also been placed on the blacklist.

The move will prevent those Chinese entities from buying US products.

Hikvision strongly opposed the decision by the US government, as it will hamper efforts by global companies to improve human rights around the world, according to a corporate spokesperson of Hikvision.

"Hikvision respects human rights and takes our responsibility to protect people in the US and the world seriously," the spokesperson was quoted as saying in a statement sent to the Global Times on Tuesday. 

Punishing Hikvision will deter global companies from communicating with the US government, hurt Hikvision's US business partners and negatively impact the US economy, the company said.

Megvii Technology on Tuesday also expressed strong opposition toward the decision, as the ban comes "without any factual basis." "We strictly stick to policies regarding data privacy and security," the firm said, noting that it has been complying with laws and regulations in areas where the firm offers services.

In response to the US' action, Megvii will formulate a comprehensive plan to deal with its situation.

Inclusion on the list will not have a significant impact on the daily operation of iFlytek, the firm said, adding that it has "plans for this situation and will continue to provide customers with qualified products and services."

Hikvision and Dahua announced they would stop stock trading in the A-share market on Tuesday. Dahua had not commented on the situation as of press time.

The US made use of politics as a disguise and its real purpose is to suppress the technological advantages of these Chinese companies, Ma Jihua, a veteran industry analyst, told the Global Times on Tuesday.

Ma said that China will take countermeasures as its own unreliable entity list will be unveiled soon. 

These Chinese tech firms will be affected in a limited manner as they have made preparations during the year-long trade war initiated by the US, Ma said.

In May, the Trump administration put Huawei on its blacklist, citing national security concerns. It added five Chinese entities to the list in June, also citing issues of national security.