Amazon turns to Chinese firm on U.S. blacklist to meet up thermal camera needs

Amazon.com Inc has bought cameras to take temperatures of personnel through the coronavirus pandemic from a firm the United States blacklisted over allegations it helped China detain and monitor Uighurs and other Muslim minorities, three persons familiar with the matter told Reuters.

China's Zhejiang Dahua Technology Co Ltd shipped 1,500 cameras to Amazon this month in a deal valued at close to$10 million, among the persons said. At least 500 systems from Dahua, the blacklisted firm, are for Amazon's use in the United States, another person said.

The Amazon procurement, which has not been previously reported, is legal because the rules control U.S. government contract awards and exports to blacklisted firms, nonetheless they usually do not stop sales to the private sector.

However, america "considers that transactions of any nature with listed entities carry a 'red flag' and recommends that U.S. companies proceed with caution," according to the Bureau of Industry and Security's website. Dahua has disputed the designation, and Beijing has denied mistreatment of the minority groups.

The offer comes as the U.S. Food and Drug Administration warned of a shortage of temperature-reading devices and said it wouldn't halt certain pandemic uses of thermal cameras that lack the agency's regulatory approval. Top U.S.-based maker FLIR Systems Inc has faced an up to weeks-long order backlog, forcing it to prioritize products for hospitals and other critical facilities.

Amazon declined to confirm its obtain Dahua, but said its hardware complied with national, state and local law, and its own temperature checks were to "support medical and safety of our employees, who continue to provide a critical service inside our communities."

The company added it was implementing thermal imagers from"multiple" manufacturers, which it declined to name. These vendors include Infrared Cameras Inc, which Reuters previously reported, and FLIR, according to employees at Amazon-owned Whole Foods who saw the deployment. FLIR declined to comment on its customers.

Senator Marco Rubio, a critic of China's policies in the country's Xinjiang region, where Uighurs and members of other largely Muslim minority groups have been detained in camps, said Dahua equipment represented a "massive risk of security" to companies and america.

“It is just one more example of why we should get started rebuilding America's domestic manufacturing capacities and end our dangerous over-reliance on China," he said in response to the news.

Dahua, one of the primary surveillance camera manufacturers globally, said it does not discuss customer engagements and it adheres to applicable laws. Dahua is committed "to mitigate the spread of the COVID-19" through technology that detects"abnormal elevated skin temperature - with high accuracy," it said in a statement.

The U.S. Department of Commerce, which maintains the blacklist, declined comment. The FDA said it could use discretion when enforcing regulations during the public health crisis as long as thermal systems lacking compliance posed no"undue risk" and secondary evaluations confirmed fevers.

Dahua's thermal cameras have already been used in hospitals, airports, train stations, government offices and factories during the pandemic. International Business Machines Corp put an order for 100 units, and the automaker Chrysler located an order for 10, one of the sources said. In addition to selling thermal technology, Dahua makes white-label security camera systems resold under a large number of other brands such as for example Honeywell, according to analyze and reporting firm IPVM.

Honeywell said some but not all its cameras are created by Dahua, and it holds products to its cybersecurity and compliance standards. IBM and Chrysler's parent, Fiat Chrysler Automobiles NV, did not comment.

The Trump administration added Dahua and seven other tech companies this past year to the blacklist for acting against U.S. foreign policy interests, saying these were "implicated" in "China's campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups."

A lot more than 1 million people have already been sent to camps in the Xinjiang region within China's campaign to root out terrorism, the US has estimated.

"It’s troubling to discover that well-known American companies are continuing to carefully turn a blind eye to companies that are fueling the Chinese Communist Party's brutal treatment of so a lot of their own people," said the top Republican on the home Foreign Affairs Committee, Michael McCaul, of the news headlines.

Dahua has said the U.S. decision lacked "any factual basis." Beijing has urged the United States to remove the firms from the list.

A provision of U.S. law, which is scheduled to take effect in August, will also bar the federal government from starting or renewing contracts with a company using "any equipment, system, or service" from businesses including Dahua "as a considerable or essential component of any system."

Amazon's cloud unit is a major contractor with the U.S. intelligence community, and it's been battling Microsoft Corp for an up to $10 billion manage the Pentagon.

Top industry associations have asked Congress for a year-long delay because they state the law would reduce supplies to the federal government dramatically, and U.S. Secretary of State Mike Pompeo said last week that policies clarifying the implementation of regulations were forthcoming.

The coronavirus has infected staff from a large number of Amazon warehouses, ignited small protests over allegedly unsafe conditions and prompted unions to demand site closures. Temperature checks help Amazon stay operational, and the cameras a faster, socially distant option to forehead thermometers - can speed up lines to enter its buildings. Amazon said the type of temperature reader it uses varies because they build.

To see if someone includes a fever, Dahua's camera compares someone's radiation to another infrared calibration device. It uses face detection technology to track subjects walking by and make certain it really is looking for heat in the proper place.

Yet another recording device keeps snapshots of faces the camera has spotted and their temperatures, according to a demonstration of the technology in San Francisco. Optional facial recognition software can fetch images of the same subject across time to determine, for instance, who a virus patient might have been near in a line for temperature checks.

Amazon said it isn't using facial recognition on some of its thermal cameras. Civil liberties groups have warned the program could strip persons of privacy and result in arbitrary apprehensions if relied on by police. U.S. authorities also have worried that equipment makers like Dahua could hide a technical "back door" to Chinese government agents seeking intelligence.

In response to questions about the thermal systems, Amazon said in a statement, "None of this equipment has network connectivity, and no personal identifiable information will be visible, collected, or stored."

Dahua made a decision to advertise its technology in america prior to the FDA issued the guidance on thermal cameras in the pandemic. Its supply is attracting many U.S. customers not deterred by the blacklist, according to Evan Steiner, who sells surveillance equipment from a variety of manufacturers in California through his firm EnterActive Networks LLC.

"You're seeing a whole lot of companies doing everything that they possibly can preemptively to prepare because of their workforce returning," he said.