Recently, the U.S. Department of Commerce placed 33 Chinese institutions on the "Unverified List" to control their exports, including electronics, optics, and biology companies, as well as key university laboratories.
America's "trade stick" is here again!
After two months, the U.S. Department of Commerce's "blacklist" has expanded again, this time including 33 More Chinese companies.
The U.S. Department of Commerce's Bureau of Industry and Security (BIS) issued a statement yesterday local time, placing 33 companies from China on the "unverified list."
The statement said it did so because it was impossible to determine how the entities would use products exported from the United States.
The 33 Chinese companies were added to the so-called "unverified list," a global list that U.S. officials cannot routinely inspect, so they are subject to stricter export controls. Matthew Axelrod, assistant secretary for export enforcement at the Commerce Department, said in a statement, "Verifying the legitimacy and reliability of foreign parties receiving U.S. exports by completing end-use checks in a timely manner is a core principle of our export control system."
He also said adding 33 Chinese companies to the "unverified list" would "help U.S. exporters conduct due diligence and assess transaction risks." And send a signal to the Chinese government of the importance of their cooperation in arranging end-user inspections." Most of the Chinese entities on the list are electronics companies, but also optical companies, a wind turbine blade company and the university's national laboratory.
The specific list is as follows:
1. China Hangfa Southern Industry Co., Ltd
2. Beijing Shiweitong Technology Development Co., Ltd
3. Beijing Zhonghe Hangxun Technology Co., Ltd
4. China Second Heavy Group Deyang Wanhang Model Forging Co., Ltd
5. Chuzhou Huike Optoelectronic Technology Co., Ltd
6. Dongguan Derun Optical Technology Co., Ltd
7. Dongguan Huiqun Electronics Co., Ltd
8. Guangdong Guanghua Technology Co., Ltd
9. Guangxi Indium Tai Technology Co., Ltd
10. Guangzhou Haimuxing Laser Technology Co., Ltd
11. Harbin Xinguang Feitian Optoelectronics Technology Co., Ltd
12. Hefei Anxin Ruide Precision Manufacturing Co., Ltd
13. Heshan Derun Electronic Technology Co., Ltd
14. Hubei Longchang Optics Co., Ltd
15. Hubei Xingfu Electronic Materials Co., Ltd
16. Hunan University
17. Jinan Bond Laser Co., Ltd
18. Jiutian Intelligent Equipment Co., Ltd
19. Kunshan Hengruicheng Industrial Technology Co., Ltd
20. Shanghai Fansheng Optoelectronic Technology Co., Ltd
21. Shanghai Microelectronics Equipment (Group) Co., Ltd
22. Shuangxiang (Fujian) Electronics Co., Ltd
23. Southern University of Science and Technology
24. Suzhou Ultra-micro Refined Nano Optoelectronics Co., Ltd
25. Suzhou Yunzuka Electronic Technology Co., Ltd
26. Suzhou Liangyu Mould Technology Co., Ltd
27. Wuxi WuXi Biotechnology Co., Ltd
28. Shanghai WuXi Biotechnology Co., Ltd
29. Wuxi Turbine Blade Co., Ltd
30. Yunnan Fs Optics Co., Ltd.
31. Yunnan Trina Optoelectronic Technology Co., Ltd
32. Zhengzhou Baiwei Intelligent Automation Equipment Co., Ltd
33. Zhuzhou CRRC Special Equipment Technology Co., Ltd
Wave after wave of sticks
The United States has previously placed a number of Chinese institutions on its so-called "entity list." In December last year, the US side included eight Chinese companies on the "investment blacklist" on the grounds of so-called Xinjiang-related issues.
The 8 companies include top drone manufacturer DJI; three of the "AI Tigers": Megvii Technology, Yitu Technology, and Yuncong Technology; as well as supercomputer giant Dawning; communications company Leon Technology; network security companies Dongfang Net Power, and Meiya Bakke. Named companies are banned from using any U.S. technology, and U.S. investors are not allowed to invest in companies that are blacklisted.
In response, Chinese Foreign Ministry spokesman Zhao Lijian said at a regular press conference on December 15 last year:
"The Chinese side is seriously concerned about the relevant reports. Individual politicians in the United States have generalized the concept of national security and politicized, instrumentalized, and ideologized science and technology, economic and trade issues. This violates the principles of market economy and fair competition, and will only threaten to damage the security of the global industrial chain supply chain and undermine international trade rules.
More threatening "unverified checklist"
Compared with the previous ban on the "Entity List" and the "Investment Blacklist", the threat component of the US Department of Commerce's "Unverified List" is heavier. The "Unverified List" is provided for in the U.S. Export Control Regulations. The foreign entity on the list is participating in or has been involved in transactions involving the export, re-export or domestic transfer of any Items subject to the EAR.
BiS said it was impossible to determine whether the export of the items would violate the Export Control Regulations if it could not verify whether the foreign entities involved in the transaction were "bona fides" or legitimate, and thus whether the exported items would be used for the same purpose as the exporter had declared. In this case, if the "end-user verification" of a foreign entity cannot be completed, the foreign entity will be placed on the "unverified list".
After being listed on the "Unverified List", A U.S. exporter will need to obtain a license if he wants to ship to any company on the list. For companies on the list, they must prove their legitimacy and be willing to comply with U.S. regulations in order to continue to receive imported goods. Foreign media reported that the move was intended to remind China that if it wants these companies to withdraw from the list, it must allow the United States to verify and inspect these companies. After the 33 Chinese companies were listed, the total number of entities on the list reached about 175. In addition, countries such as Russia and the United Arab Emirates have enterprises on the list.
BIS's 33 new Chinese entities are detailed below:
https://public-inspection.federalregister.gov/2022-02536.pdf