China overhauls surveillance network with on-device AI cameras

TL;DR:

• An FT analysis of more than a dozen procurement documents finds Chinese local governments are deploying AI-powered surveillance with computer vision and large language models running directly on cameras, enabling text-prompt video search and behavioural prediction.
• The upgrade is more modest than the original Rmb300bn build-out a decade ago — tenders range from roughly Rmb1m to Rmb10m per district — as authorities layer new AI onto existing infrastructure rather than rebuild from scratch.
• For the UK, the renewed visibility of Hikvision’s capabilities is timely: government bodies have been removing Chinese-made cameras from sensitive sites since 2022, and the Crime and Policing Act 2026 sets up a new facial-recognition regulator.

Local governments across China are upgrading what is already the world’s largest surveillance network with on-device AI, according to a Financial Times analysis of procurement documents and interviews with people familiar with the contracts. New generations of cameras from Hikvision and Huawei carry semiconductors powerful enough to run computer vision and large language models locally, letting authorities analyse footage at the point of capture rather than streaming everything to centralised data centres.

What the new generation can do

Hikvision’s latest products let operators search footage using natural-language prompts — “a woman wearing a red hat” — and retrieve relevant video automatically. The earlier generation required a reference image to perform similar searches. Systems are trained to predict and alert on behaviours including erratic driving, unauthorised entry, crowd build-up and lingering near bridges. One Sichuan province tender allocated Rmb900,000 ($132,455) for 175 high-definition cameras with intelligent video analysis. A Datong police tender listed AI cameras able to identify gender, posture and clothing.

The economic shape is different from the original build. The 2010s infrastructure cost an estimated Rmb300 billion; this upgrade cycle is layered onto existing kit, with most tenders in the Rmb1m–Rmb10m range per district. Some authorities are even retaining cameras and only replacing intermediary servers with “AI PCs” that handle AI workloads locally — cutting cloud compute bills.

Why UK readers should care

Hikvision equipment has been a recurring concern for UK government and security communities since 2022, when ministers ordered Chinese-made cameras removed from sensitive government sites. The renewed visibility of what these devices can now do — particularly the integration of LLMs that infer behaviour rather than simply recognise faces — sharpens questions about what residual Hikvision and Dahua kit remains in UK local-authority, transport and commercial deployments, and what capability that hardware will gain through firmware updates.

The Crime and Policing Act 2026, which received Royal Assent on 29 April, sets up a new independent regulator for facial recognition and similar technologies in the UK. Whether that regulator’s remit extends to assessing supply chain and capability risk from imported AI-surveillance hardware will be one of the first practical tests of the new framework.

Looking forward

Hikvision’s parent supplier, Shanghai Fullhan Microelectronics, has experienced rapid growth tied to the upgrade cycle. Industry executives expect government spending to accelerate. For UK security and procurement decision-makers, the question is no longer whether to worry about Chinese-made AI surveillance hardware but how to operationalise a coherent response across central government, devolved administrations and the private sector — particularly as the equipment itself is becoming dramatically more capable in the field.