US ban on China’s biggest supplier of police mobile radio systems may help Motorola

The US action marks a big challenge to Shenzhen-based Hytera, which has been expanding its international sales

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Hytera Communications Corp is China’s biggest supplier of professional mobile radio systems used by the police, government security agencies, public utilities and commercial enterprises. Photo: Handout

Published: 7:00am, 11 Aug 2019Updated: 11:06pm, 11 Aug 2019

Hytera Communications Corp, China’s biggest supplier of professional mobile radio (PMR) systems used by police, is expected to lose ground in the world’s largest economy, as a ban on US federal agencies buying equipment from the company takes effect on Tuesday.

That federal ban, outlined in section 889 of the 2019 US National Defence Authorisation Act, also covers four other major Chinese hi-tech companies, telecommunications network equipment vendors Huawei Technologies and ZTE Corp as well as surveillance systems providers Hangzhou Hikvision Digital Technology and Dahua Technology.

The prohibition points to the growing wariness in the US over Chinese hi-tech providers, which are regarded as potential national security threats, amid an escalating trade dispute between Washington and Beijing.

It comes a year before the US Congress’ mandated deadline of August 2020, when all federal contractors must stop doing business with those five Chinese hi-tech suppliers.

The Metropolitan Police Service, the territorial police force of the 32 boroughs which make up Greater London, have recently adopted radio terminals from Sepura Group, the UK-based business of Hytera Communications Corp. Photo: Handout

For Hytera, the US federal ban represents a challenge to its international expansion efforts, which has been driven by strategic corporate acquisitions over the years in the US and Europe.

That strategy has enabled the firm to broaden its range of products and brands, as well as increase distribution around the world and add more sophisticated engineering talent. In 2017, Hytera acquired UK-based PMR communications gear vendor Sepura Group, which had the second largest market share in public security in Europe.