Experts say the possible sanctions would increase tensions with China.
"Putting Hikvision on the SDN list, if that is indeed what they are planning to do, is a significant escalation," said Emily Kilcrease, a senior fellow at the Center for a New American Security and former deputy assistant U.S. Trade Representative.
"While human rights issues are very much on the top of the Biden administration agenda, I thought their approach would be more calibrated," Kilcrease said, adding that she would expect the move against Hikvision to be saved for deployment in the case of a more active conflict with China.
Hikvision already faces U.S. export and investment restrictions.
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