Huawei Is Blocked in U.S. but Its Chips Power Cameras Everywhere

Pelco, a California-based security camera maker, set lofty sales targets last year for a model with sharper video resolution and other cutting-edge features. That was until Congress derailed its plans.

In August, updated legislation barred the U.S. military and government from buying tech gear from firms deemed too close to authorities in China. When the bill surfaced, Pelco scrapped any thought of providing its new GPC Professional 4K camera to the U.S. government and lowered its sales goals. The reason: The device uses parts from HiSilicon, the chip division of Huawei Technologies Co.

Huawei, China’s largest technology company, is the ...