A China Mobile investment unit acquired a minority stake in domestic video surveillance company Dahua Technology for CNY5.1 billion ($741.6 million), a business which was caught up in a US crackdown on perceived threats to national security.

China Mobile Capital’s investment brings it an 8.8 per cent stake in Dahua Technology, a maker of connected video cameras which was added to a list of companies banned by the US Department of Commerce in 2019.

The investment requires standard regulatory approvals.

Dahua Technology’s US subsidiary issued a statement explaining the investment does not change its parent company’s status as an independent company and, as a minority shareholder, China Mobile will not have operational control over or “undue influence over its decision making”.

The video surveillance equipment maker was also among five Chinese companies targeted by the US Federal Communications Commission as potential security threats: legislation passed in November 2021 prevents the agency from licensing radio equipment made by the companies.

China Mobile last month invested CNY45 billion in Postal Savings Bank of China, becoming its second-largest domestic shareholder and in June 2022 acquired Venustech, a provider of network security products for CNY4.3 billion.

In December 2021, China Mobile invested CNY6 billion in SVOLT, an energy tech company specialising in batteries and energy storage systems for vehicles.