Chinese AI company postpones IPO due to US blacklist

New Delhi, December 13 : .

After getting again caught in the tensions between China and the US, SenseTime, a Chinese AI company is putting off its stock market debutChinese startup for artificial intelligence announced Monday it was delaying its highly anticipated Hong Kong initial public offering.

It had originally planned to raise $767 million.The company was expected to begin trading this week.

The US Treasury Department put the company on Fridays list of Chinese military-industrial complex firms.This is a move that would have the US President Joe Biden banning Americans from investing in China, according to the report.

According to the US Treasury, SenseTime was sanctioned for facilitating human rights violations against Uyghurs in Xinjiang and other Muslim minorities.CNN reported that SenseTime strongly denies these accusations.

According to a Stock Exchange filing, Mondays company stated that it will delay the companys listing in order "to protect the interests of potential investors" and "allow them to consider the possible impact of any US investment." It added that investors in Hong Kong who have already applied for the IPO will be refunded.

SenseTime said that it still "remains committed to completing the global offering and the listing soon." It noted Monday that it would release an updated prospectus for investors, with a new expected timetable.

Fridays announcement isnt the first time SenseTime has run into trouble with Washington.In 2019, the companys Beijing subsidiary was placed on a US entity list, barring it from buying US products or importing American technology without a special license, the report added.

At that time, the US government also cited concerns about the western Chinese region of Xinjiang, and links that facial recognition software firms like SenseTime had to the region.While the use of such technology in policing and domestic security is widespread across China, it is especially prevalent in Xinjiang, where up to two million people from Uyghur and other ethnic Muslim minorities have allegedly been put into internment camps, according to the US State Department, the report said.

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