Alibaba Group Holding and China Mobile Communications Group Co are considering investing 3 billion yuan ($443 million) in Zhejiang Dahua Technology Co Ltd, three people with knowledge of the matter said.
Dahua, China’s second-largest surveillance equipment maker, is among Chinese tech firms that Washington last year placed on a blacklist of companies it said helped Beijing monitor and detain Uighurs and other Muslim minorities. Those blacklisted cannot buy US technology without US government approval.
E-commerce leader Alibaba and top telecommunications group China Mobile plan to jointly invest in Shenzhen-listed Dahua, which has a market capitalisation of $10.3 billion, via a private share placement in coming weeks, the people said.
China Mobile is also negotiating a three-year business agreement with Dahua worth 40 billion yuan, said two of the people, who declined to be identified as the plans are private.
The agreement would give China Mobile use of Dahua’s big data and cloud computing services, video surveillance equipment, and Internet of Things (IoT) technology, they said.