A Chinese company was knocked back on a bid to set up a new biometric system for New Zealand police because it could not meet the tender requirements.
Inspur Software is under pressure in the US after being named in a Pentagon list of 20 firms controlled by the Chinese military.
Inspur and two other bidders lost out to a US firm, Dataworks Plus, to set up and help operate powerful facial recognition and other image gathering technology for police for the next decade.
The tenders were assessed against 284 requirements, 174 of them mandatory, police said.
"Inspur were assessed as not meeting the system overview and mandatory requirements, and therefore were not included in the conforming tenders process," they said in a statement to RNZ.
Inspur has provided cloud data services to police in China.
Beijing has responded to the threat of US sanctions linked to the Pentagon list, with its largest centrally-controlled state-owned IT company, China Electronics Corp. announcing it will enter into cloud services with government support and using only technologies developed in China.