Written by | Su Shu
Edit | Li Xinma
Title map | IC Photo
Following last December, the U.S. Department of Commerce updated the Entity List again.
On March 2, local time, the Bureau of Industry and Security ("BIS") under the US Department of Commerce included 37 entities in the "Entity List" on the grounds of "national security" and "foreign policy interests". Among them, there are 28 enterprises, research institutions and individuals including Chinese mainland, 1 in Taiwan, 4 in Pakistan, 3 in Myanmar, and 1 each in Russia and Belarus.
In addition, BIS has revised existing entries at 10 Chinese scientific research institutions, including Beihang University, which the Commerce Department says represent a range of potential national security risks. The new Entity List rules are effective as of March 2, 2023.
It is understood that the Chinese companies included in the "Entity List" by the United States include Inspur Group, Loongson Zhongke, Fourth Paradigm, BGI Gene Research Institute, Centec Communications and so on.
Inspur Group
Inspur Group is the largest server manufacturer and server solution provider in China, and one of the earliest IT brands in China, with three listed companies: Inspur Information, Inspur Software and Inspur International.
Image source: official website
As a well-known IT infrastructure technology, product, solution and service provider in China, Inspur's business covers x86 servers, storage, databases, AI accelerators, AI management software, etc., especially in the x86 server market, with a high market share.
In response to the news that the United States may expand the export ban on Chinese companies such as Inspur, Inspur Information responded to the media that the company is further verifying the assessment, and there is no more information to synchronize.
Affected by this news, Inspur Company fell after the opening today, Inspur Software opened down 4.86%, Hong Kong stock Inspur Digital Enterprise opened down 14.19%, and the intraday decline once expanded to 17.13%.
It is worth noting that this is not the first time that Inspur Group has been included in the Entity List. Earlier, it was reported that Inspur Information had been added to the US export control list, and Intel moved to suspend supply, which also caused Inspur's stock price to fall directly on the same day.
Fourth normal form
The fourth paradigm is one of China's AI unicorns, providing platform-centric AI solutions that enable enterprises to achieve rapid and large-scale transformation of artificial intelligence, explore the hidden rules of data and comprehensively improve the decision-making capabilities of enterprises.
Image source: official website
At present, Fourth Paradigm is still trying to hit the listing. In February this year, not long after the last prospectus expired, Fourth Paradigm once again submitted its listing application to the Hong Kong Stock Exchange.
For the "Entity List" incident, Fourth Paradigm issued a "statement" on the WeChat public account to express strong opposition. Fourth Paradigm responded that it has been a global leader in AI technology research and has been the first to apply these technologies to business solutions. All core technologies come from independent research and development, with independent intellectual property rights. Products and services are delivered without reliance on U.S. imports.
Paradigm IV also mentions that inclusion in the Entity List has little impact on Paradigm IV operations. Paradigm 4 will continue to be committed to helping enterprises break through the bottleneck of existing business development, enhance core competitiveness, achieve qualitative changes in operation through artificial intelligence technology, and continue to provide customers with high-value, high-quality and stable services.
Loongson Zhongket
Loongson Zhongke is a CPU design enterprise, the main business is the development, sales and service of processors and supporting chips, the main products and services include Loongson No. 1 series, Loongson No. 2 series, Loongson No. 3 series processors and supporting chip products and basic software and hardware solutions business.
Image source: official website
It is understood that Loongson Zhongke is relatively less affected by the US ban because its chip products are self-developed and has a self-designed independent command system LoongArch. As of today's close, Loongson Zhongke shares are up 6.32%.
It is worth noting that affected by US sanctions, Loongson Zhongke's subsequent chip design will not be able to use American EDA software, and domestic EDA may be difficult to fully meet the needs of Loongson Zhongke. In addition, in view of the fact that the United States' suppression of China's chip industry has continued to increase, the United States may further restrict the production of Loongson Zhongke advanced process chips.
Regarding the "Entity List", Loongson Zhongke has no further response.
BGI
BGI is a cutting-edge organization specializing in life sciences. A scientific research method based on learning, research and application. Scientific and technological research involving human, medical, agricultural, animal husbandry, endangered animal protection and other molecular genetic levels.
Image source: official website
BGI said that it is communicating with relevant parties from news sources to verify, and if there is further progress later, you can pay attention to the company's official website or announcement. At present, BGI's stock has not been affected by the news, and the stock price rose 3.37% as of the close.
Centec Communications
Centec Communications is an Ethernet switch chip design company, the main business is the research and development, design and sales of Ethernet switch chips and supporting products. Ethernet switch chip is the core platform chip to build enterprise network, carrier network, data center network and industrial network. In June 2022, Centec Communications held its IPO on the Shanghai Stock Exchange.
Regarding the "Entity List", Centec Communications has no official response.
Regarding the "Entity List", at the Foreign Ministry's regular press conference on March 3, Foreign Ministry spokesman Mao Ning said: "This is another example of the United States fabricating excuses to suppress Chinese companies by any means." We urge the US side to respect the basic facts, abandon ideological prejudice, stop abusing various excuses to unreasonably suppress Chinese enterprises, and provide fair, just and non-discriminatory treatment for the operation of Chinese enterprises. China will also continue to firmly safeguard the legitimate and legitimate rights and interests of its own enterprises and support Chinese enterprises in safeguarding their rights and interests in accordance with the law. ”
Beginning in 1997, the United States drew up its "Entity List" for the first time. Being included in the "Entity List" means that they are on the US export "blacklist", and the enterprises and institutions in the list will become the targets of export restrictions by the Industry and Security Bureau of the US Department of Commerce, and cannot import the required products from US companies and exporters from other countries with more than 25% of US technology or parts, which is essentially subject to the US technology blockade and supply chain isolation.
Since the emergence of the "Entity List", the United States has repeatedly included Chinese enterprises, scientific research institutions and individuals.
In December last year, the U.S. Department of Commerce issued an announcement listing 36 Chinese entities on the U.S. export control "entity list," including chip and semiconductor manufacturing companies such as Cambrian, Hefei Zhaoxin Electronics, Changjiang Storage and its Japanese subsidiaries.
According to some scholars' statistics, as of December 12, 2022, there are 2,029 Chinese entities listed in the "Entity List" by the US Department of Commerce, spanning communications, finance, transportation and shipping. The types of entities include cutting-edge technology companies such as Huawei and SMIC, as well as education and scientific research institutions such as Harbin Institute of Technology and the Institute of Computing Technology of the Chinese Academy of Sciences, of which there are more than 1,000 Chinese enterprises.
On February 10 this year, the U.S. Department of Commerce issued an announcement listing six Chinese entities on the U.S. Export Control "Entity List." This is the second update this year, and it is foreseeable that the "Entity List" will continue to expand as China and the United States continue to engage in the fields of science and technology and economics.