Wikipedia

Nuctech Company

Nuctech Company, Ltd (同方威视技术股份有限公司, formerly 威视股份[citation needed]) is a Chinese partially state-owned security inspection products company, headquartered in Beijing, created in 1997 as an offshoot of Tsinghua University.[1][2] Nuctech Company's parent company, Tsinghua Tongfang, is controlled by the China National Nuclear Corporation,[1][3] a state-owned company that manages China's civilian and military nuclear fuel development program.[4][5][6] Several countries have raised concerns about contracts for security scanning equipment due to the company's partial state ownership and ties to the Chinese Communist Party and Chinese military.[1][7][8][9][10]

Nuctech Company
Native name
同方威视技术股份有限公司
FormerlyNuclear Technology Company
Company typePartially state-owned enterprise
IndustrySecurity, Inspection
Founded1997; 27 years ago (1997)
FounderKang Kejun, Chen Zhiqiang
Headquarters
Beijing
,
China
Key people
Dr. Zhiqiang Chen (President, Chairman and CEO)
ProductsCargo scanning, metal detector, X-ray, puffer machine
Number of employees
5000 (global)
ParentTsinghua Tongfang
Websitewww.nuctech.com Edit this at Wikidata
Nuctech Company Limited
Simplified Chinese同方威视技术股份有限公司
Traditional Chinese同方威視技術股份有限公司

History edit

Nuctech Company was founded in 1997 in Beijing as Nuctech Co, Ltd. by several professors from Tsinghua University who wanted to commercialize results of their research in container inspection technology.[11] In 1999, the company sold inspection systems to Chinese customs and in 2001 signed its first international contracts with Australia and the United Arab Emirates.[11] In 2006, the company won a contract to install scanners to detect dangerous liquids in a total of 147 airports across China.[2] In 2015, the company opened a factory in Brazil.[12] In 2018, Nuctech opened a factory in Kobyłka, a town near Warsaw.[13] In 2016, Nuctech formed a subsidiary, FoundMacro, to serve the defense sector.[14]

The company's x-ray scanners and other security equipment were used at the 2014 World Cup and the 2016 Olympic Games and 2016 Paralympic Games in Brazil and other large public events including the 2015 Milan Expo, the 2015 Wimbledon tennis tournament, and the 2018 Summit of the Americas.[1][15][16]

Ownership and management edit

Nuctech is a subsidiary of Tsinghua Tongfang, which is publicly traded on the Shanghai Stock Exchange.[17] Tsinghua Tongfang owns two thirds of Nuctech's shares.[18] In 2019, the China National Nuclear Corporation,[1][3] a state-owned company that manages China's civilian and military nuclear fuel development program, bought a 21 percent stake in Tsinghua Tongfang.[4][5][6] The company has stated that CNNC owns 16 percent of Nuctech shares through Tsinghua Tongfang.[19] In April 2021, a Nuctech spokesperson stated that "the Chinese government does not control the company or its management decisions."[18]

Executive directors and chairmen of the company have included Hu Haifeng, son of former General Secretary of the Chinese Communist Party Hu Jintao, from 2003 until 2008, Rong Yonglin, and Zhou Liye.[20] The current chairman is Chen Zhiqiang.[21]

According to a 2022 report by the Associated Press, "Nuctech’s ownership structure is so complex that can be difficult for outsiders to understand the true lines of influence and accountability."[22]

Products and services edit

 
Nuctech X-ray scanner truck

Nuctech Company manufactures security inspection products, including scanners for baggage and parcel inspection, cargo and vehicle inspection, personnel inspection, and fever screening technology.[23][24] Nuctech's products are used in civil aviation, customs inspection, railway inspection, highway freight inspection, building security and large event security.[25][26] In the United States, Nuctech body scanners are also used to detect contraband in prisons.[27]

Nuctech security equipment is in use at airports across Europe, including in Spain, Italy, Cyprus and the United Kingdom and by customs and border agencies in Ireland and Finland.[1][28][29] The company also reported contracts in countries including Syria, Australia, Turkey, Iran, Belgium, Venezuela, Zimbabwe, Norway and South Korea.[30][31]

Criticism edit

Nuctech Company has been criticized for its practices and mentioned in a number of media reports in relation to controversies.[2][32]

Data security edit

The company's ties to the Chinese Communist Party and CNNC have raised concerns from some countries about data security, including Canada and Lithuania.[32][33] In 2020, customs authorities in Finland stated that they found no security grounds to reject a bid by Nuctech.[7] In 2021, Nuctech responded to a decision by Lithuania to eliminate it in a tender for national security reasons by stating that it has not had any data or security incident reported by customers and that the company "fully complied with Lithuanian, Polish and EU laws and regulations, not to the laws of any third country, including China".[33] A Lithuanian special governmental commission that vets deals for national security impact on August 12, 2021, approved the purchase and installation of Nuctech X-ray equipment at the Belarusian border.[34]

In 2022, several members of the European Parliament issued a letter challenging a tender to award Nuctech for scanners in the Strasbourg Airport due to security concerns.[35]

Procurement investigation in the Philippines edit

In 2006, the Philippine government bought 30 units of mobile X-ray equipment through a loan agreement with the Chinese government for a total value of P7.953 billion. In 2016, it was reported that the Commission on Audit of the Philippines (COA) found that the contract had been "exorbitantly overpriced," that a much lower quotation existed from another supplier, and that maintenance costs were higher for Nuctech products.[36] COA auditors clarified that the price inquiry was made despite the difficulty in providing an accurate unit price and full specifications of Nuctech's machines. The COA asked the Bureau of Customs to review the original contract and evaluate the deal.[36]

Anti-dumping dispute edit

In July 2009, it was reported that Nuctech was accused of "illegal dumping" by Smiths Group and that an anti-dumping investigation by the European Union (EU) was ongoing.[37][38] In June 2010, the EU imposed a five-year tariff on Nuctech products for alleged dumping on the European market.[39] The anti-dumping measures expired in the absence of an extension request.[40] In response to the ruling, the company shifted production to a factory outside Warsaw, Poland.[7]

Bribery scandal in Namibia edit

On July 21, 2009, a Nuctech representative and two Namibians were arrested after the Anti-Corruption Commission of Namibia (ACC) discovered that a US$12.8 million down payment on 13 scanners had been diverted to a firm called Teko Trading.[41][42][43][20][44][45] Namibian prosecutors charged the three with joining in a bribery scheme that secured a $55.3 million contract in May 2008 to install Nuctech scanners at customs inspection points across Namibia.[41][46][20][47][48] Other sources report the contract to be worth $69 million.[49] General Martin Shalli was subsequently suspended by Namibian president Hifikepunye Pohamba for allegedly receiving millions of Namibian dollars from Nuctech.[50][51][52][49] In 2019, those arrested and charged were acquitted in court.[53][54]

Bribery scandal in Taiwan edit

In February 2020, the Taipei Times reported Taiwan's former head of the Aviation Police Bureau's aviation security section was found guilty on corruption charges in relation to a procurement project involving Nuctech.[55][56]

Canadian embassies contract rejected edit

In July 2020, Canada's foreign affairs minister stated that he would review contracts awarded by the Canada Border Services Agency in light of Nuctech's connections to the Chinese Communist Party.[57][8] After hiring Deloitte to undertake a security review, the Canadian government decided to reject a $6.8 million deal with Nuctech.[58][59] In September 2020, Global News reported that the Canadian International Trade Tribunal was reviewing the procurement of the contract.[60]

Quality and procurement concerns in Malaysia edit

According to a July 2020 report by Malaysiakini, the National Audit Department and the Royal Malaysian Customs Department have both cited quality and procurement concerns with Nuctech products.[61]

U.S. ban and sanctions edit

In 2014, the Transportation Security Administration banned Nuctech equipment from U.S. airports due to security concerns.[7][62] In December 2020, the United States Department of Commerce added Nuctech to the Bureau of Industry and Security's Entity List.[63][22]

References edit

  1. ^ a b c d e f Cerulus, Laurens (February 11, 2020). "Meet the Huawei of airport security: Chinese vendor Nuctech has lawmakers, experts spooked about airports' supply chain security". Politico. Archived from the original on June 21, 2020. Retrieved July 17, 2020.
  2. ^ a b c Wines, Michael (2009-07-21). "Graft Inquiry in Namibia Finds Clues in China". The New York Times. ISSN 0362-4331. Archived from the original on 2019-10-06. Retrieved 2020-07-17.
  3. ^ a b "CNNC teams up with Tsinghua University on school-enterprise reform". China National Nuclear Corporation. April 4, 2019. Archived from the original on October 28, 2019. Retrieved 2020-07-20.
  4. ^ a b "Company Profile". China National Nuclear Corporation. 2016-02-01. Archived from the original on April 29, 2016. Retrieved 2020-07-18.
  5. ^ a b "China National Nuclear Corporation". Australian Strategic Policy Institute. 11 June 2020. Archived from the original on 17 March 2020. Retrieved 2020-07-18.
  6. ^ a b Allen-Ebrahimian, Bethany; Dorfman, Zach (June 24, 2020). "Defense Department produces list of Chinese military-linked companies". Axios. Archived from the original on June 25, 2020. Retrieved July 18, 2020.
  7. ^ a b c d O’Keeffe, Kate (2020-06-28). "U.S. Presses Europe to Uproot Chinese Security-Screening Company". The Wall Street Journal. ISSN 0099-9660. Archived from the original on 2020-07-05. Retrieved 2020-07-18.
  8. ^ a b Sam, Cooper; Russell, Andrew (July 17, 2020). "Canadian minister promises review after security contracts awarded to Chinese-state tech company". Global News. Archived from the original on August 24, 2020. Retrieved July 17, 2020.
  9. ^ Sahagun, Louis (February 5, 2009). "Port seeks to cancel X-ray unit contract". Los Angeles Times. Archived from the original on July 20, 2020. Retrieved July 20, 2020.
  10. ^ Collingridge, John (August 9, 2020). "Alert over Nuctech, the 'Huawei of airports'". The Times. ISSN 0140-0460. Archived from the original on 2020-08-11. Retrieved 2020-08-12.
  11. ^ a b Wu, Jinxi; Ye, Michelle; Ding, Ling; Lu, Chao; Euwema, Martin (June 2017). "From "transplant with the soil" toward the establishment of the innovation ecosystem: A case study of a leading high-tech company in China". Technological Forecasting and Social Change. 135: 222–234. doi:10.1016/j.techfore.2017.06.001. S2CID 157998424.
  12. ^ "Nuctech provides security equipment support for the BRICS Brasilia Summit". Tsinghua Holdings. Archived from the original on 22 April 2021. Retrieved 22 April 2021.
  13. ^ Walków, Marcin (26 September 2018). "Chiński koncern otwiera nową fabrykę pod Warszawą. To jeden z czterech zakładów na świecie". Business Insider. Archived from the original on 22 April 2021. Retrieved 22 April 2021.
  14. ^ "Mapping China's Tech Giants". Australian Strategic Policy Institute. Archived from the original on December 25, 2021. Retrieved September 24, 2021.
  15. ^ Choi, Ha-young (11 August 2016). "Chinese suppliers dominate Rio". Korea Times. Archived from the original on 6 May 2021. Retrieved 6 May 2021.
  16. ^ Jackson, Joe (23 February 2016). "Security giants earn huge windfalls from 'surveillance-industrial complex'". Aljazeera America. Archived from the original on 7 May 2021. Retrieved 6 May 2021.
  17. ^ "Tsinghua Tongfang Co., Ltd. (600100.SS)". Yahoo Finance. Yahoo. Archived from the original on 4 June 2021. Retrieved 10 May 2021.
  18. ^ a b Hamilton, Fiona (26 April 2021). "Chinese company Nuctech handed security deals worth £12m". The Times. Archived from the original on 7 May 2021. Retrieved 8 May 2021.
  19. ^ Cooper, Sam; Russell, Andrew (10 September 2020). "Canadian minister promises review after security contracts awarded to Chinese-state tech company". Global News. Archived from the original on 24 August 2020. Retrieved 29 May 2021.
  20. ^ a b c "China Internet blackout linked to leader's son". Taipei Times. 2009-07-24. Archived from the original on 2019-09-09. Retrieved 2020-07-17.
  21. ^ "Nuctech takes center stage in regional security sector". China Daily. 2018-02-09. Archived from the original on 2020-07-03. Retrieved 2020-07-17.
  22. ^ a b Kinetz, Erika (January 20, 2022). "Security scanners across Europe tied to China govt, military". Associated Press. Archived from the original on May 3, 2023. Retrieved January 21, 2022.
  23. ^ "Products and Solutions". Nuctech.com. Nuctech Company Limited. Archived from the original on 29 January 2021. Retrieved 21 April 2021.
  24. ^ "AI and Machine Learning: extending the capability of security scanners". Airport Business. 2018-11-21. Archived from the original on 2020-07-06. Retrieved 2020-07-06.
  25. ^ Bos, Robert (3 July 2020). "Reinforcing Digital Sovereignty In Post-Covid Era: Case Study Of Security Inspection Equipment". Euractiv.com. Archived from the original on 6 July 2020. Retrieved 6 July 2020.
  26. ^ "Market and Industry". Nuctech.com. Nuctech Company Limited. Archived from the original on 28 January 2021. Retrieved 21 April 2021.
  27. ^ Becker, Abigail (17 October 2018). "Dane County Jail acquires body scanners to screen for contraband". The Capital Times. Archived from the original on 21 April 2021. Retrieved 21 April 2021.
  28. ^ "Customs buys giant scanner to tackle contraband". The Irish Times. 15 December 2004. Archived from the original on 4 June 2021. Retrieved 6 May 2021.
  29. ^ Michaels, Daniel; Hinshaw, Drew (17 December 2020). "Chinese Companies Win Billions in European Taxpayer-Funded Contracts". Wall Street Journal. Archived from the original on 7 May 2021. Retrieved 6 May 2021.
  30. ^ "Beijing makes moves in Syrian reconstruction chess game". Intelligence Online. 2020-07-13. Archived from the original on 2020-07-13. Retrieved 2020-07-18.
  31. ^ "Scanners soaring overseas". China Daily. Archived from the original on 2020-07-03. Retrieved 2020-07-18.
  32. ^ a b Sytas, Andrius (2021-02-17). "Lithuania blocks Chinese scanning equipment on national security grounds". Reuters. Archived from the original on 2021-11-17. Retrieved 2021-02-18.
  33. ^ a b "China's Nuctech surprised at its elimination in Lithuania, minister keeps mum". The Baltic Times. 2 February 2021. Archived from the original on 18 May 2021. Retrieved 18 May 2021.
  34. ^ "China's Nuctech get OK to install X-ray machine for Lithuanian customs". Baltic Times. Archived from the original on 17 August 2021. Retrieved 17 August 2021.
  35. ^ Rosemain, Mathieu (2022-10-14). "Strasbourg airport's Chinese scanners deal prompts outcry from EU lawmakers". Reuters. Archived from the original on 2022-10-14. Retrieved 2022-10-14.
  36. ^ a b Carolyn, Bonquin (August 2, 2016). "COA: X-ray trucks bought from China overpriced by P4.2-B". ABS-CBN News and Current Affairs. Archived from the original on July 7, 2020. Retrieved 2020-07-18.
  37. ^ Castle, Stephen (2010-04-27). "E.U. Seeks to Extend Anti-Dumping Tariff on Scanners From China". The New York Times. ISSN 0362-4331. Archived from the original on 2015-08-25. Retrieved 2020-07-18.
  38. ^ Aldrick, Philip (19 July 2009). "European Union probes Chinese 'soft loans' ploy over NucTech". The Daily Telegraph. ISSN 0307-1235. Archived from the original on 29 January 2011. Retrieved 2020-07-18.
  39. ^ Freedman, Jennifer M. (February 27, 2013). "Chinese Duties on EU X-ray Gear Violate Global Rules: WTO". Bloomberg News. Archived from the original on 28 March 2020. Retrieved 28 March 2020.
  40. ^ European Union, Publications Office (2015-06-27). "Notice of the impending expiry of certain anti-dumping measures". op.europa.eu. Archived from the original on 2020-08-24. Retrieved 2020-07-09.
  41. ^ a b Bosch, Marius (2009-07-24). "Namibia graft body wants to interview son of Hu". Reuters. Archived from the original on 2020-08-24. Retrieved 2020-07-18.
  42. ^ Fairclough, Gordon (2009-07-22). "Probes Involve Firm Linked to China Leader's Son". The Wall Street Journal. ISSN 0099-9660. Archived from the original on 2017-10-20. Retrieved 2020-07-18.
  43. ^ Uppal, Disha (July 23, 2009). "Chinese Firm Embroiled in Namibian Corruption Scandal". Deutsche Welle. Archived from the original on March 28, 2020. Retrieved 2020-07-18.
  44. ^ Grobler, John (2010-04-08). "3 Plead Not Guilty to Corruption in Namibia". The New York Times. ISSN 0362-4331. Archived from the original on 2014-05-15. Retrieved 2020-07-18.
  45. ^ Mudie, Luisetta (2009-07-24). "China Censors News of Hu's Son: Chinese Web sites tying the president's son to news of a corruption probe are shut down and later reopened with the related stories missing". Radio Free Asia. Archived from the original on July 3, 2018. Retrieved July 17, 2020.
  46. ^ LaFraniere, Sharon; Grobler, John (2009-09-21). "China Spreads Aid in Africa, With a Catch". The New York Times. ISSN 0362-4331. Archived from the original on 2019-09-13. Retrieved 2020-07-18.
  47. ^ Berger, Sebastien (17 July 2009). "Hu Jintao's son linked to African corruption probe". The Daily Telegraph. Archived from the original on 28 March 2020. Retrieved 2020-07-17.
  48. ^ Baldauf, Scott (2009-08-03). "China censors Namibia corruption case that may touch president's son". Christian Science Monitor. ISSN 0882-7729. Archived from the original on 2020-03-28. Retrieved 2020-07-18.
  49. ^ a b Loudon, Bruce (July 25, 2009). "Namibian army sacking a new twist in Hu Jintao son's case". The Australian. Archived from the original on July 28, 2009.
  50. ^ "Namibia suspends army chief following kickback reports". Mail & Guardian. 2009-07-30. Archived from the original on 2020-08-24. Retrieved 2020-07-18.
  51. ^ Menges, Werner (2009-07-29). "Cash crunch trips up bail of Lameck and co". The Namibian. Archived from the original on 2020-08-24. Retrieved July 18, 2020.
  52. ^ "Investigations into corruption in a Chinese company connected to the son of Hu Jintao". AsiaNews. Archived from the original on 16 September 2019. Retrieved 24 May 2020.
  53. ^ Menges, Werner (September 11, 2019). "Acquittal asked in Chinese scanner deal fraud trial". The Namibian. Archived from the original on July 8, 2020. Retrieved June 4, 2021.
  54. ^ Menges, Werner (September 19, 2019). "Lameck and co-accused walk free". The Namibian. Archived from the original on July 8, 2020. Retrieved June 4, 2021.
  55. ^ Chin-feng, Bien (July 26, 2016). "Aviation police officer indicted on corruption charges". Central News Agency. Archived from the original on August 24, 2020. Retrieved July 18, 2020.
  56. ^ Pan, Jason (February 28, 2020). "Ex-Aviation Police Bureau official guilty of corruption". Taipei Times. Archived from the original on 13 March 2020. Retrieved 28 March 2020.
  57. ^ Ivison, John (July 16, 2020). "Chinese government-owned firm wins $6.8M contract to supply security equipment to Canada's embassies". The Province. Archived from the original on August 24, 2020. Retrieved July 24, 2020.
  58. ^ Cooper, Sam (November 18, 2020). "$6.8 million Nuctech deal rejected after security review". Global News. Archived from the original on November 18, 2020. Retrieved November 22, 2020.
  59. ^ Platt, Brian (November 19, 2020). "Security scanners from a Chinese firm not the best plan for our embassies, government decides". National Post. Archived from the original on December 16, 2020. Retrieved November 22, 2020.
  60. ^ Jackson, Hannah (September 9, 2020). "Tribunal to review Canada's deal with partially Chinese state-owned company for X-ray scanners". Global News. Archived from the original on June 3, 2021. Retrieved June 4, 2021.
  61. ^ Hui, Wong Kai (2020-07-07). "Murky procurement of 'blacklisted' X-ray scanners". Malaysiakini. Archived from the original on 2020-07-08. Retrieved 2020-07-18.
  62. ^ Abraham, Rohan (July 3, 2020). "US accuses Chinese screening tech firm Nuctech of passing passenger info to Beijing". The Economic Times. Archived from the original on August 24, 2020. Retrieved July 17, 2020.
  63. ^ Whalen, Jeanne; Nakashima, Ellen (2020-12-19). "U.S. bans technology exports to Chinese semiconductor and drone companies, calling them security threats". The Washington Post. ISSN 0190-8286. Archived from the original on 2020-12-19. Retrieved 2020-12-19.

External links edit

 
Wikimedia Commons has media related to Nuctech.
Retrieved from "https://en.wikipedia.org/w/index.php?title=Nuctech_Company&oldid=1216571742"