By Julie Zhu

HONG KONG (Reuters) – Alibaba Group Holding Ltd and China Mobile Communications Group Co Ltd [CHNMC.UL] are considering investing 3 billion yuan ($443 million) in Zhejiang Dahua Technology Co Ltd <002236.SZ>, three people with knowledge of the matter said.

Dahua, China’s second-largest surveillance equipment maker, is among Chinese tech firms that Washington last year placed on a blacklist of companies it said helped Beijing monitor and detain Uighurs and other Muslim minorities. Those blacklisted cannot buy U.S. technology without U.S. government approval.

E-commerce leader Alibaba and top telecommunications group China Mobile plan to jointly invest in Shenzhen-listed Dahua – which has a market capitalisation of $10.3 billion – via a private share placement in coming weeks, the people said.

China Mobile is also negotiating a three-year business agreement with Dahua worth 40 billion yuan, said two of the people, who declined to be identified as the plans

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