Recently, the U.S. Department of Commerce put 33 Chinese organizations on the 'unverified list' for export control, including electronics, optics, and biotechnology companies, as well as key university laboratories.
The US 'trade stick' is at it again!
After two months, the US Department of Commerce's 'blacklist' has expanded again, this time to include 33 more Chinese companies.
The U.S. Department of Commerce's Bureau of Industry and Security (BIS) released a statement yesterday, local time, placing 33 companies from China on the 'unverified list'.
The statement said that this was done because it was not possible to determine how these entities would use products exported from the US.
He also said that this addition of 33 companies from China to the "unverified list" will "help U.S. exporters conduct due diligence and assess the risks of their transactions. and signal to the Chinese government the importance of their cooperation in arranging end-user verification." Most of the Chinese entities on the list are electronics companies, but there are also optical companies, a wind turbine blade company, and university national laboratories.
The list is as follows:
1. China Aerospace Development Southern Industry Co.
2. Beijing Shivetong Science and Technology Development Co.
3. Beijing Zhonghe Avionics Technology Co.
4. China Second Heavy Industries Group Deyang Wanhang Moulding & Forging Co.
5. Chuzhou Huike Technology Co. > 5. Chuzhou Huike Optoelectronic Technology Co.
6. Dongguan Derun Optical Technology Co.
7. Dongguan Huiqun Electronics Co.
8. Guangdong Guanghua Technology Co.
9. Guangxi Indium Technology Co.
10. Guangzhou HaiMuXing Laser Science and Technology Co. Harbin Xinguang Feitian Optoelectronic Technology Co.
12. Hefei Anxin Ruide Precision Manufacturing Co.
13. Heshan Derun Electronic Technology Co.
14. Hubei Longchang Optical Co.
15. Hubei Xingfu Electronic Materials Co.
16. Hunan University
17. Jinan Bond Laser Co. Ltd.
18. Jutian Intelligent Equipment Co.
19. Kunshan Hengruicheng Industrial Technology Co.
20. Shanghai Fansheng Optoelectronics Technology Co.
21. Shanghai Microelectronics Equipment (Group) Co.
22. Shuangxiang (Fujian) Electronics Co. > 23. Southern University of Science and Technology (SUST)
24. Suzhou Chaomicro Precision Optoelectronics Co.
25. Suzhou Yunzuka Electronics Technology Co.
26. Suzhou Liangyu Mold Technology Co.
27. Wuxi WuXi PharmaMing BioTechnology Co.
28. Shanghai PharmaMing BioTechnology Co. 29. Wuxi Turbine Blade Co.
30. Yunnan Fs Optics Co., Ltd.
31. Yunnan Tianheli Optoelectronics Technology Co.
32. Zhengzhou Baiwei Intelligent Automation Equipment Co.
33. Zhuzhou Zhongshi Special Equipment Technology Co.
Sticks and Strikes
The big sticks come in waves.
The U.S. has previously included a number of Chinese organizations on its so-called "entity list. Last December, the U.S. put eight Chinese companies on its "investment blacklist" on the grounds of so-called border-related issues.
The eight companies included top drone maker DJI; three of the "Four Little Dragons of AI," artificial intelligence companies: Kuangshi Technology, YiTu Technology, and Yunfeng Technology; supercomputer giant Dawning; communications company Leon Technology; and network security companies Oriental Networks and Miyabeke. The named companies are banned from using any U.S. technology, while U.S. investors are not allowed to invest in companies that are blacklisted.
"China is gravely concerned about the reports. Individual U.S. politicians have generalized the concept of national security, and politicized, instrumentalized, and ideologized science and technology as well as economic and trade issues. This runs counter to the principles of market economy and fair competition, and will only threaten to jeopardize the security of the global industrial chain supply chain and undermine the rules of international trade, and is a typical political maneuvering to the detriment of others.
More threatening 'unverified list'
Compared with the previous banning effect of 'entity list' and 'investment blacklist', the threatening component of the US Department of Commerce's 'unverified list' this time is much heavier. The 'unverified list' is regulated in the US Export Control Regulations. Foreign entities on the list are participating or have participated in transactions involving the export, re-export, or domestic transfer of any items subject to the EAR.
BIS said that without the ability to verify that the foreign entities involved in the transaction are "bona fides" (bona fides) or legitimate, and therefore unable to determine whether the exported items will be used for the same purpose for which the exporter declared they were exported, there is no way of determining whether or not the export of those items would violate the EAR. In such cases, if the 'end-user verification' of a foreign entity cannot be completed, the foreign entity will be placed on the 'unverified list'.
Being placed on the Unverified List requires a license if a U.S. exporter wants to ship to any company on the list. For companies on the list, they must prove their legitimacy and willingness to comply with U.S. regulations in order to continue to receive imported goods. Some foreign media reports say the move is meant to remind China that it must allow the U.S. to verify and inspect these companies if it wants them removed from the list. The 33 Chinese companies on the list bring the total number of entities on the list to about 175. Additionally, countries like Russia and the United Arab Emirates have companies on the list.
Details of the 33 new Chinese entities added to the BIS can be found at:
https://public-inspection.federalregister.gov/2022-02536.pdf