Alibaba Group Holding Ltd and China Mobile Communications Group Co Ltd are now bearing in mind to invest 3 billion yuan that is almost $443 million in Zhejiang Dahua Technology Co Ltd.
Dahua company has a market capitalization of $10.3 billion and Alibaba group and China Mobile Communications are planning to jointly invest in Dahua via a private share placement, according to people familiar with the matter.
Dahua is China’s second largest surveillance equipment maker. It was blacklisted by Washington last year as it helped Beijing monitor and detain Uighurs and Muslim minorities.
China Mobile is negotiating a three year business agreement with Dahua worth 40 billion yuan. The agreement would give China Mobile use of Dahua’s big data and cloud computing services.
But neither China Mobile nor Alibaba group have yet responded or commented any information on the matter.
The deal would come as the government builds over 500 smart cities featuring the world’s most sophisticated surveillance technology networks. China is focusing n installing millions of cameras in public spaces for facial recognition to manage various issues like traffic and public health.