Author: He Zhiyi, Chief Expert, Institute of Global Industry, Tsinghua University, Professor of Peking University, Adjunct Professor of The School of Risk, Southern University of Science and Technology
Source: Zhenghe Island
01, Preface: Opponent OR enemy
Chairman Mao famously said, "Whatever the enemy opposes, we must support." Whatever the enemy supports, we will oppose. ”
The enemy that Chairman Mao said is the real enemy. Is the United States now an enemy of China? Is China an enemy of the United States?
When Trump was president a few years ago, he once called Germany an "enemy", which caused an uproar in German public opinion. Later, Trump came forward to explain that saying "enemy" was an exaggeration of colloquialism, and his original intention was "opponent". In English, it may be the difference between enemy and rival.
This shows that the opponent is sometimes the enemy. At this point, let me learn from Trump, if someone feels harsh on the word "enemy," think of it as an "adversary."
At present, Sino-US relations are between the opponent and the enemy, and this line is difficult to demarcate, and it is not necessarily the enemy who fights the war. And, apparently, the United States sees China as an enemy.
The U.S. Entity List is a means of technically blocking the enemy. Originally, it was mainly against some Middle Eastern countries and Russia, but from 2018 onwards, it has shifted to mainly target China.
In 2018, the United States and Canada joined forces to detain Meng Wanzhou, still using Huawei's trade with a country in the Middle East to talk about things, but it is clear that the drunkard does not intend to drink.
In the latest edition of the U.S. Department of Commerce's Industry and Security (BIS) entity list, a total of 78 countries and regions are involved, and before 2018, the country with the most sanctioned entities was Russia, followed by the United Arab Emirates and Iran, and now the spearhead is Directly At China.
U.S. sanctions against China are divided into three phases.
The first phase was from 1997 to 2007, in which a total of 21 entities were sanctioned over a 11-year period, an average of 2 entities per year (of which 8 years were 0).
The second phase was from 2008 to 2017, with sanctions of 174 entities per year in 10 years, an average of 17 entities per year.
The third phase is from 2018 to the present, and a total of 431 sanctions have been imposed in the past four years, an average of 108 entities per year.
Since 1997, the U.S. Department of Commerce's Bureau of Industry and Security has progressively added 626 entities (including entities and their subsidiaries, Chinese-affiliated enterprises and individuals) to the Entity List through 52 announcements. The entity list is constantly being updated, with additions, consolidations and removals.
In the latest Entity List released by BIS on July 19, 2021, a total of 443 Chinese entities (including Hong Kong and Taiwan) are included, including 20 government entities, 13 university entities, 69 research institute entities, 291 corporate entities and 50 individuals. At the same time, a total of 30 China-related entities have been removed from the entity list.
In addition, there are 92 overseas entities associated with Chinese entities but counted in other countries and regions, for a total of 535. In fact, this latest "Entity List" consolidates the previous 67 entity units under the name of 7 units, so strictly speaking, the total number of entity units in China is 595.
Sun Tzu knows that he knows himself and knows the other, and he will never lose a battle. When we study China's industrial structure and industrial policy, it necessarily involves leading enterprises in the industry, so we touch on the impact of U.S. Entity List sanctions on Chinese enterprises and industries.
Since it is impossible to search for complete information in the domestic public literature and information, we are determined to establish our own database, classify and code and follow up on research for a long time.
The data search and collation of this study is very heavy, and this article is written at the time of Ms. Meng Wanzhou's release and return to China.
She touched the hearts of hundreds of millions of Chinese people in Canada, and we watched her speech in Canada when she was free, the circle of friends article written on the plane, and the speech at the airport after landing in Shenzhen, which made people feel the strength of Huawei people, the strength of Huawei, and the brightness of China's great shore.
Huawei is the first bearer of the US sanctions against Chinese enterprises, the first enemy in the eyes of the enemy, so in our hearts is the first hero among heroes, no less than the volunteer heroes on the Korean battlefield. This is a stage achievement of Huawei, but also a stage achievement of China's Sino-US trade war, or a campaign victory.
This war is by no means over. The arrest of a Russian business executive by the United States on the same day seemed to send some kind of signal. Victories in the war were made up of victories in one battle after another, and the victories in this battle were extremely arduous and worth celebrating.
Therefore, we use this article to pay tribute to Ms. Meng Wanzhou and all Huawei soldiers! Of course, it is even more important to pay tribute to all units and individuals sanctioned by the US "Entity List".
The following is a brief description of the content of this part of the study.
02. Overview of the U.S. Entity List
1. Meaning of "Entity List"
The "Entity List" is sometimes referred to as a number of "list" sanctions adopted by the United States against China, such as the "Specially Designated Countries" (SDN) list led by the U.S. Treasury Department's Office of Foreign Assets Control (of WHICHAC), the "Non-SDN China Military Complex Company" list, and the "Denied Persons" list, the "Unverified" list, the "Entity" list, and the "Military End-User" list led by the U.S. Department of Commerce's Bureau of Industry and Security (BIS).
A narrow "entity list", a list that BIS publishes from time to time and reports to Congress for updated lists. It was first announced in February 1997 to restrict the export of goods and technologies related to weapons of mass destruction, and has since expanded.
Being on the Entity List means being on the U.S. Export Control "Blacklist," and the companies and institutions on the list will be targeted by BIS for export restrictions.
Any business that exports more than 25 percent of U.S. technology products or parts to a listed enterprise or agency, or imports related products from exporters in other countries, must apply for a license.
The data statistics and analysis done in this article are based on a narrow "entity manifest".
2. Regulatory bodies of the Entity List
The BIS that leads the Entity List, as a department directly administered by the U.S. Deputy Secretary of Commerce, has the authority to:
Formulating, implementing and revising export control lists;
Represented the United States in multilateral mechanisms such as the Wassenaar Agreement and established international regulatory lists;
Review of annual exports;
Verification of foreign investments involving key technologies.
Once sanctioned on the BIS Entity List, violators of the ban face a maximum fine of $1 million or 20 years in prison.
In fiscal 2021, the BIS department had a budget of $138 million and 469 employees. BIS was founded to limit the outflow of high-end technology without hampering U.S. business interests.
It can be said that BIS is not only the executive agency of export control of dual-use items in the United States, but also the main body of the US industrial technology survey and national security investigation, restricting the export of foreign technology through revising the control list, understanding the competitiveness of the industry through the investigation, and formulating national security strategies.
3. Control and Sanctions Provisions
The control and sanctions provisions in the Entity List are divided into three main categories, involving 443 entities in Chinese mainland, Hong Kong, China and Taiwan:
1) Constructive refusal: understood as basic non-approval. For most Chinese institutions on the Entity List, the U.S. Department of Commerce will take a "presumption of refusal" when reviewing export license applications. Of the 443 Chinese entities listed in the BIS, 346 are involved, and all 92 Chinese entities overseas are also involved in this category.
2) Export controls based on end-user and end-use: understood as declarable, end-user and uses are reviewed. The end-use of certain rocket systems (including ballistic missiles, space launch vehicles and sounding rockets) and unmanned aerial vehicles (including cruise missiles, target aircraft and unmanned reconnaissance aircraft) is mainly restricted. A total of 21 Chinese entities were involved.
3) Case-by-case handling: Understand that it can be declared, and in order to check all the items listed on the Export Control List (CLL) one by one, involving a total of 75 entities in China.
4) Special cases: Understand as extremely individual cases. Only 1 Chinese entity is involved: AVIC 625 Research Institute.
03, ridiculous "entity list"
Entities from around the world that the United States considers to involve national security or foreign policy interests are likely to be included in the Entity List.
In the first batch of "entity lists" published by the United States in 1997, the China Academy of Engineering Physics (hereinafter referred to as the Ninth Academy) became the first unit to be sanctioned.
From 1997 to 2007, the United States issued three batches of sanctions notices to China involving 21 entities. In order to curb China's aerospace technology and military forces, the United States has included a number of research institutes under the China Aerospace Science and Technology Corporation, the China Aerospace Science and Industry Group, and the China Electronics Technology Group on the "Entity List," as well as The Beihang University and the Northwestern Polytechnical University, two universities related to the national weapons and armaments and aerospace technology.
The second phase of sanctions against China was from 2008 to 2017.
During this period, BIS issued 27 batches of announcements related to Chinese entities, including 174 enterprises Chinese mainland and Hong Kong, China, into the "Entity List", mainly to prevent China from trading goods and technologies for military purposes with countries such as Iraq, Afghanistan and Iran.
For example, on March 8, 2016, BIS imposed sanctions by including ZTE on the Entity List.
The third phase of sanctions against China is that since 2018, the United States has taken the "entity list" sanctions as one of the important means of the Sino-US trade war initiated by the United States, and issued a total of 22 batches of sanctions, involving 431 Chinese entities.
Among them, there are 3 batches specifically aimed at Huawei, involving a total of 152 entity units in China and 21 countries and regions, which is the largest sanction against a company in history, and Ms. Meng Wanzhou was arrested in Canada on the grounds that Huawei violated the regulations of the United States to sanction a certain country in the Middle East.
In addition to restricting Chinese high-tech entities on the grounds of violating U.S. national security and foreign policy interests, 53 Chinese government agencies and business entities have been added to the sanctions list in three batches, citing human rights in Xinjiang, all of which have participated in China's crackdown, mass arbitrary detentions, forced labor, and high-tech surveillance of Uighurs and other predominantly Muslim minorities in the Xinjiang Uyghur Autonomous Region.
This fully reflects the using authority's bandit face of grossly interfering in China's internal affairs.
We can imagine a ridiculous situation in which other governments would place U.S. police departments and companies that make police equipment and even police clothing on the Entity List for violating "human rights" because U.S. police officers killed black people.
The United States has also arbitrarily and unjustifiably included 25 Chinese government agencies and business entities on the sanctions list on the grounds of island building in the South China Sea. The South China Sea Islands are China's territory, and China's own island construction on its own territory, and the participating enterprises are also subject to the so-called "entity list" sanctions, which is even more ridiculous.
04. Government agencies and institutions in the Entity List
In the "entity list" of the United States, Chinese government institutions and institutions such as the Xinjiang Production and Construction Corps and the China Academy of Engineering Physics have appeared.
The Xinjiang Production and Construction Corps is a well-known provincial-level administrative unit in China, and when the central documents are issued, they generally issue "all provinces, autonomous regions, municipalities directly under the Central Government and the Xinjiang Production and Construction Corps".
On October 9, 2019, the U.S. Department of Commerce included the Xinjiang Autonomous Region Public Security Department, the Public Security Bureau of the Xinjiang Production and Construction Corps, and public security agencies in 19 regions in Xinjiang on the Entity List before putting it on the Entity List on June 24, 2021.
From this point of view, the staff of the US Department of Commerce should have common sense, and the Xinjiang Production and Construction Corps, which owns the Public Security Bureau, is obviously a government agency. We therefore consider this to be a clear act of provocation.
The China Academy of Engineering Physics was the first U.S. agency to sanction China for inclusion on the Entity List in 1997. It can also be known from public information that this is a ministerial-level research institution under the dual management of the State Council and the Central Military Commission.
As we know, it is itself a product of the blockade imposed on China by the United States during the "Cold War", and the United States is completely unqualified and capable of imposing so-called sanctions on it.
The United States has also included the Northwest Institute of Nuclear Technology and the Xinjiang Autonomous Region Public Security Department and 17 prefectural and municipal public security bureaus on the "entity list."
It can be seen that the "entity list" of the US Department of Commerce is not only a means of economic sanctions, but also has a strong political orientation.
05, these universities, we are proud
Chinese universities that have been included in the "entity list" by the United States are honorable, which proves that they are an important foundation for the country's defense industry and high-tech industry.
The first universities to be sanctioned were Beihang University and Northwestern Polytechnical University, which were included in the third batch of sanctions against China in the United States on May 14, 2001. Since then, the United States has added 13 Chinese universities to the "Entity List" in 5 batches of sanctions.
Among the 13 universities, there are 985 institutions, 8, 4 of the 211 institutions, and 1 other institution.
Among them, Harbin Institute of Technology, Beijing Institute of Technology, Beihang University, Northwestern Polytechnical University, Harbin Engineering University, Nanjing University of Aeronautics and Astronautics, and Nanjing University of Science and Technology are the universities affiliated to the Commission of Science, Technology and Industry for National Defense in history, known as the "Seven Sons of National Defense"; the National University of Defense Science and Technology is a military academy, Tianjin University and Sichuan University are comprehensive universities; Beijing University of Posts and Telecommunications and the University of Electronic Science and Technology of China are famous IT schools in China; and the Xinjiang Police College is one of the units of the United States sanctioning Xinjiang's public security system.
In terms of the principle of "enemy opposition", the above 13 institutions are important universities in the country, and they make the United States feel threatened and put on the "entity list". The selection principle of Americans proves that they are the best educational institutions in China.
In addition, there are 7 companies on the U.S. Sanctions Entity List that are affiliated with universities.
For example, Tianjin Micro-Nano Manufacturing Technology Engineering Center and North (Tianjin) Microsystem Co., Ltd. associated with Tianjin University, Summit Multi-scale Scientific Research Institute associated with Southwest Jiaotong University, Beijing Beihang Asset Management Co., Ltd. and Beihang Changying Technology Co., Ltd. associated with Beihang University, and Tongfang Vision Technology Co., Ltd. and Tongfang Ruian Technology Co., Ltd. associated with Tsinghua University.
The U.S. "Entity List" sanctions list also lists 7 national supercomputing centers, of which the Tianjin Supercomputing Center is related to the National University of Defense Technology, the Changsha Supercomputing Center is in Hunan University, the Guangzhou Supercomputing Center is in Sun Yat-sen University, the Jinan Supercomputing Center is in Qilu University of Technology, and the Zhengzhou Supercomputing Center is in Zhengzhou University.
In addition, five other universities are on a separate "RedFlag" list by the U.S. Department of Commerce on suspicion that they have purchased the relevant regulated equipment, but not necessarily the actual end users.
The five schools are: Nanchang University, Chinese Min University, Tongji University, Xi'an Jiaotong University, and Guangdong University of Technology.
In summary, there are 13 Chinese universities on the "Entity List" by the United States, 6 of which are related, and 5 of which are on the "danger list" of the US Department of Commerce. Let's be proud of them.
06. Important state-owned enterprises in the "Entity List"
China's state-owned enterprises are one of the important embodiments of the nature of socialism with Chinese characteristics, an important means for China to resist and counter the "visible hand" of the capital groups headed by the United States in the international market, and an important tool for the state to regulate and control the national economy, which plays an irreplaceable role.
The "Entity List" of the United States mainly involves the following 9 central enterprises:
China Electronics Technology Group Limited (involving 46 subordinate entities);
China Shipbuilding Industry Corporation Limited (involving 30 subordinate entities);
China Aerospace Science and Industry Corporation Limited (involving 22 subordinate entities);
China Aerospace Science and Technology Corporation Limited (involving 6 subordinate entities);
China Communications Construction Group Co., Ltd. (involving 6 subordinate entities);
China General Nuclear Power Corporation Limited (involving 3 subordinate entities);
Poly International Holdings Limited (involving 2 subordinate entities);
China Electronics Information Industry Group (involving 2 subordinate entities);
China National Offshore Oil Corporation.
Subtlely, the only parent companies in the U.S. that are directly on the entity list under the sasacy administration are CGN and CNOOC. Others are included in subunits of level II or below.
07. Important private enterprises in the "Entity List"
Private enterprises and the private economy are important achievements of China's reform and opening up, and are the most sensitive and active part of the economy to the market.
According to the statistics of the All-China Federation of Industry and Commerce, China's private economy contributes more than 50 percent of tax revenue, more than 60 percent of gross domestic product, more than 70 percent of technological innovation achievements, more than 80 percent of urban labor force employment, and more than 90 percent of the number of enterprises.
In particular, the private entrepreneurs who grow up in the survival of the fittest in the market are valuable assets of the country and even the world, and are huge intangible assets that are better than tangible assets.
From the U.S. "entity list" of China, it can be seen that private enterprises account for 39% (not counting individuals).
Typical representatives include: Huawei Investment Holding Co., Ltd., Shenzhen Dajiang Innovation Technology Co., Ltd., Beijing Qihoo 360 Technology Co., Ltd., Leon Technology Co., Ltd., Zhejiang Dahua Technology Co., Ltd., Shenzhen Huada Gene Technology Co., Ltd., Jinchuang Group Co., Ltd., Megvii Technology Co., Ltd., Yuncong Technology Group Co., Ltd., Shanghai Yitu Network Technology Co., Ltd., and Beijing SenseTime Technology Development Co., Ltd.
This is equivalent to being a good business endorsed by the U.S. government.
08, Ren Zhengfei, will become a hero in the history of world enterprises
Ren Zhengfei said, "Huawei wants to light the lighthouse of 5G, but just after wiping the match, the United States hit us with a big stick and knocked us unconscious." ...... We learned that this was not 'what water the lamb drank in the upper reaches of the river', but was trying to kill us".
This time, the United States has made a great determination to block Huawei, and as the world's first power, it has done its best to block a Chinese enterprise, which is unprecedented in history, and I am afraid that there will be no one to come after. If Huawei does not die, it will be a legend in the history of the world's enterprises.
Ren Zhengfei will not only be a hero in the history of Chinese enterprises, but also a hero in the history of world enterprises.
The United States released the first sanctions list of 68 entities against Huawei on May 15, 2018, followed by the second batch of 46 entities on August 19, 2019, and the third sanctions list of 38 entities on August 20, 2020, for a total of 152 entities.
In addition to Chinese mainland, Hong Kong, and Taiwan, Huawei has increased the number of countries on the BIS Entity List to 21 more countries because of its subsidiaries set up by various countries. The U.S. did everything it could to search for all the companies associated with Huawei.
For example, Shanghai Mossel Trading Co., Ltd. was originally used by Huawei to settle non-monetary settlements such as wine with it in some African countries, as well as Huawei's training companies, microfinance companies, and so on.
It can be seen that the United States is trying to completely block Huawei.
To make matters worse, Meng Wanzhou was detained in Canada on December 1, 2018, and finally returned to China on September 25, 2021 under the strong intervention of the Chinese government, and was unjustifiably detained for 1,028 days.
The case that can be referred to is that Pierozzi, a former Executive of Alstom in France, was sentenced by the United States, and the judge gave Pierucci 10 counts, the first of which was to violate the Foreign Corrupt Practices Act, which had nothing to do with the United States, nor was Pieruzzi directly involved, and the second crime was the crime of conspiracy to launder money, in terms of the amount of Pieruzzi, he should be sentenced to 100 years, and the total of various crimes was 125 years. He was eventually released after pleading guilty and Alstom was fined and bought by General Electric.
This time, the United States is also trying to put a huge pressure on Huawei in a two-pronged manner. Industry rumors that at that time, some integrated circuit companies in the United States had banned employees from communicating with Huawei employees.
It can be argued that the biggest deterrent of the US "entity list" is to arrest people and impose criminal offenses, with a maximum penalty of 20 years for a single crime, and various excuses can be found to deal with them together.
It is conceivable that under the jurisdiction of the Long Arm of the United States, it is difficult for Huawei to obtain the required American products with a vest company or through a third party.
Although Meng Wanzhou was released, the sword of criminal conviction still hangs above other companies and individuals who dare to violate the US ban.
Another example to refer to is ZTE.
ZTE was twice placed on the Entity List and was forced to survive by paying a $361 million fine once and another $892 million in fines, a 400 million deposit, being restructured from its board of directors, and accepting U.S. inspectors to the company.
For comparison, ZTE's total profit in 2017 was $1.028 billion and net profit was $824 million.
Huawei's performance seems to be unaffected in 2020, not falling but rising, reaching a record high.
The financial report shows that in 2020, Huawei received a deposit of 10 billion yuan from the sale of Honor, which was incorporated into the financial report of the year. However, in the first half of 2021, performance fell by 30% and profit fell by 30% year-on-year. However, the correspondence between revenue and profit cannot be seen from the statements.
The industry rumors that Huawei will also sell the X86 server. It is rumored that the US Department of Commerce, under the internal pressure of US manufacturers, resumed the supply of some chips below 5G to Huawei.
In war, it is not the gain or loss of one city and one pool, Huawei believes that within five years, living is victory.
Ren Zhengfei often cites the case of Ganling internally. I asked a person close to Huawei, do you need the people of the whole country to support "Shangganling" now? He said that it is not so tragic, and Huawei's strength is difficult to imagine externally.
This remark reassured me. I firmly believe that Huawei can win this modern Sino-US trade war and science and technology war "Shangganling Battle".
09. Listed companies in China in the Entity List
This article is not intended to draw public attention to the shares of listed companies on the US Entity List, but this article is willing to praise these listed companies that have attracted public attention, and due to the openness of the data of listed companies, our research team will further analyze the extent to which these listed companies are affected by the SANCTIONs of the US Entity List.
To be sure, the U.S. is also carefully selected for these listed companies, although they do not want the stock prices of these companies to rise. In our database, of the 443 sanctioned Chinese entities, a total of 38 listed companies in A-shares and Hong Kong stocks (including 1 negate listed company) were involved.
Among them, there are 20 listed companies whose entities are sanctioned, 15 whose parent companies are listed companies, and 3 listed companies that participate in more than 20% of the sanctioned entities.
At the same time, two entities in the Entity List are first-level subsidiaries of the Saous Assets Supervision and Administration Commission, namely China National Offshore Oil Group Co., Ltd. and China General Nuclear Power Group Co., Ltd.
There are 6 listed companies under CNOOC (CNOOC, CNOOC Petrochemical, CNOOC Services, CNOOC Engineering, CNOOC Development, Shandong Haihua), and 4 listed companies of CNOOC (China General Nuclear Power, CGNPC, CGN Mining, CGN New Energy).
Some well-known listed companies also include: China Communications Construction Co., Ltd., Hangzhou Hikvision Digital Technology Co., Ltd., SMIC Integrated Circuit Manufacturing Co., Ltd., Shuguang Information Industry Co., Ltd., iFLYTEK Co., Ltd., Jinchuang Group Co., Ltd., Leon Technology Co., Ltd., Zhejiang Dahua Technology Co., Ltd., etc.
10. Geographical distribution of Entity List institutions
There are 443 entities in China (including Hong Kong, China and Taiwan), excluding 50 individuals and 20 government agencies, and the Chinese mainland Chinese mainland entities are distributed in 23 provinces, municipalities directly under the Central Government, autonomous regions, and Hong Kong and Taiwan ( China ) under the condition that companies registered in hong kong (18), Chinese mainland and Taiwan (1) are assigned as Chinese mainland.
Among them, there are 76 in Beijing, 63 in Guangdong Province, 27 in Jiangsu Province, 22 in Shanghai, 20 in Sichuan Province, 17 in Xinjiang Uygur Autonomous Region, 15 in Hubei Province, 13 in Tianjin, 12 in Shaanxi Province, 10 in Zhejiang Province, 5 in Hebei, Liaoning and Heilongjiang Provinces, 4 in Anhui Province, 3 in Shandong and Henan Provinces, 2 each in Guizhou, Fujian, Hunan Province and Inner Mongolia Autonomous Region, 1 each in Guangxi Zhuang Autonomous Region, Yunnan Province and Chongqing Municipality, 56 in Hong Kong, and 6 in Taiwan.
11. These 8 industries are the strong pillars of China
1. National defense and military industry
In terms of national defense and military industry, the "entity list" includes 9 research institutes under the China Aerospace Science and Industry Corporation, 30 research institutes under the China Shipbuilding Group, 19 research institutes under the China Electronics Technology Group, and 7 universities under the "Seven Sons of National Defense".
2. Semiconductor technology
Semiconductor technology is the focus of the Sino-US game, and it is also a field that is more affected. On December 22, 2020, SMIC and its 10 related subsidiaries were included in the "Entity List", and Fujian Jinhua Integrated Circuit Co., Ltd., Haiguang Integrated Circuit Design Co., Ltd., and HiSilicon Technology Co., Ltd., which were also included, are all important companies in China in the semiconductor field.
3. Communication technology with 5G as the core
In terms of communication technology, we are most familiar with it, ZTE has paid a huge price to be removed from the "entity list", and Huawei is one of the main targets of US sanctions.
Also listed among the communication technology companies are: Beijing Huanjia Communication Technology Company, Changzhou Guoguang Data Communication Co., Ltd., Fiberhome Technology Group Co., Ltd., Guangzhou Guangyou Communication Equipment Co., Ltd., Guangzhou Haige Communication Group Co., Ltd., Guangzhou Tongguang Communication Technology Co., Ltd., Hubei Guangxing Communication Technology Co., Ltd., Leon Technology Co., Ltd. and so on.
4. Artificial intelligence and security
In terms of artificial intelligence and security equipment and technology, on October 9, 2019, BIS announced that 28 units were included in the "entity list", including Hikvision and Dahua in the field of video surveillance, iFLYTEK, Megvii, SenseTime, Yitu Technology, Meiya Berkeco, Yixin Technology, etc. in the field of artificial intelligence.
On June 5, 2020, the United States once again added 24 entities such as Qihoo 360 and Yuncong Technology, mainly artificial intelligence and security enterprises, to the "entity list". One of them, Qihoo 360, through investigation and analysis, found that the CIA attack group (APT-C-39) carried out a decade-long cyber infiltration attack on key areas of China. China's aerospace, scientific research institutions, oil industry, large Internet companies and government agencies have been attacked to varying degrees, which may be the reason for its inclusion in the sanctions.
5. Supercomputing
The United States has included 7 national supercomputing centers in China on the "entity list" on two occasions, China has a total of 8 supercomputing centers, and the only undimested Kunshan center was completed and operated at the end of 2020, which is the newly established supercomputing center.
6. Nuclear energy technology
In terms of nuclear energy technology, a total of 11 entities were included. In 1997, the China Academy of Physical Engineering was included for the first time, and on August 14, 2019, CGNPC and its affiliates CGNPC Co., Ltd. and Suzhou Thermal Engineering Research Institute Co., Ltd. were included.
7. Logistics transportation and import and export trade
In terms of logistics and transportation and import and export trade, BIS will be Beijing, Sichuan, Harbin, Hong Kong and other transportation and logistics enterprises, Tianhang Industry Import and Export Co., Ltd., Sichuan Zhonghe Import and Export Trade Co., Ltd. and other enterprises included, the United States claims that these enterprises import advanced scientific equipment, experimental precision instruments, etc., from overseas to support the development of Chinese science and technology.
8. Biotechnology and Medical
In terms of biotechnology and medical treatment, BIS added two entities of BGI to the "Entity List" on July 20, 2020, China Science Equipment Co., Ltd., a subsidiary of Sinopharm Group, and Wuxi Zhongde Meilian Biotechnology Co., Ltd., a subsidiary of Anke Biotech.
12. Individuals on the Entity List
The U.S. "entity list" of China lists the names of 50 individuals, and because pinyin can correspond to more Chinese characters, it is difficult to restore the names of these 50 people. But we can estimate that these 50 people made the Americans feel threatened, and in terms of "enemy" and "opponent" thinking, these 50 people are undoubtedly our heroes.
Referring to other information, we can find out from public information that 6 professors, graduate students and staff members of Tianjin University related to North Microsystems have been charged by the United States with conspiracy to steal trade secrets and economic espionage.
Among them, Zhang Hao, a professor at Tianjin University, was trapped by the United States on May 16, 2015, and was convicted by the U.S. federal court on three counts of stealing U.S. high-tech trade secrets and economic espionage on September 1, 2020, and was eventually sentenced to 18 months in prison and $477,000 in compensation.
The other five, Chong Zhou, Huisui Zhang, Jinping Chen, Wei Pang and Zhao Gang, are not expected to travel to the United States for so-called "academic conferences" and are listed on the "entity list" by the United States.
According to common sense, we know that as long as people on the Entity List do not enter the United States or areas controlled by the United States, there is no personal safety problem, especially in China. However, it is not safe even in neutral countries or countries where the United States does not have mutual extradition regulations.
It can be guessed that the individuals targeted by americans are not necessarily on the "entity list", and the individuals listed on the "entity list" are obvious decorations and can only play a deterrent role. Individuals who may be "adversaries" or "enemies" of the United States, or important people who are included in the "entity list" institutions, may be on some secret list of the United States.
The above-mentioned relevant persons should be highly vigilant, and their radius of action should be within the scope of protection of the People's Republic of China.
Although it is impossible and impossible for us to verify the names of these individuals, we must pay tribute to them and wish them safety and happiness.
13. The "enemy" of the United States, the backbone of China
1. U.S. Entity List sanctions are first and foremost political deterrents, and if they focus on and block a specific business, they will have a significant impact. For SMALL AND MEDIUM-SIZEDs, it may be easy to avoid.
2. Individuals listed on the Entity List are at risk of physical safety, and therefore no physical safety can be guaranteed to them in allies of the United States, or even neutral countries. Such cases do occur. All people who are not on the list who attract the attention of the United States and executives of entities listed on the list should be on high alert.
3. In the early days, the United States only targeted China's nuclear and aerospace industries involving strategic weapons, which was related to so-called national security, but after the Sino-US trade war, the United States completely blocked high-tech industries that China may compete with the United States. Relying on such government means to intervene in market competition not only undermines the rules of the global market, but also fails to achieve its goal.
4. We should also have a two-pronged response to the U.S. Entity List sanctions. At the level of political reciprocity, we should also publish the "entity list" of US entities accordingly, so as to repay the favor and exchange courtesy.
At the level of economic sanctions, several key enterprises should be selected for sanctions in a courteous and respectful manner. For example, in the past we exchanged market for technology, and now the other party does not give us technology, we can not give the market.
It is not necessary that if the other party does not give A technology, we will not give the A market, and we may not give the B market if the other party does not give A technology. Sometimes we have to learn from the United States the determination to kill a thousand enemies and inflict eight hundred self-inflicted wounds. Ancient and modern Chinese and foreign armies meet the brave and win.
5. China must have its own entire industrial chain, especially the core technologies of key industries. Just because the United States is loose for a while, we cannot return to the old road of "shipbuilding is better than buying ships, and buying ships is not as good as renting ships." The government's support for the industry lies not only in investment, but also in creating a market or a certain market share, using the market to drive the growth and maturity of industries and enterprises, and the whole society and users must form such a consensus, and this measure must be persistent.
6. Chinese and the Chinese market should pay tribute to and support the enemies of the United States, our heroic enterprises, in various ways, which is the greatest purpose of this article.
This is the purpose of this article's incessant enumeration of the units on China's sanctioned Entity List. Given that they are "adversaries" or "enemies" that the United States has blocked at this time, then they should be our heroes. It is hoped that they will further stand up the backbone of science and technology and industry for the rejuvenation of the Chinese nation.
14. Epilogue: If faith has color, it must be Chinese red
At the end of this article, I am reminded of the scenes of the Korean War. The Korean War had two battlefields, one was the battlefield of fighting and the other was the battlefield of talking.
From July 10, 1951, Negotiations between China and the DprK began with the United States and South Korea. While negotiating, the two sides are still engaged in bloody fighting on the battlefield.
On the Chinese side, Mao Zedong did not let his guard down because of the armistice negotiations. He said, "Fight for a stop, be prepared to drag." On the part of the army, on the other hand, it should make plans to delay, just fight, do not talk, do not slacken its efforts, and everything should still be carried out according to the original plan."
The United States also believes that negotiations do not mean an immediate truce, and that confrontational actions will not cease until the armistice is signed. The U.S. government has authorized its military leaders to conduct land, amphibious, airborne, and maritime operations in support of negotiations.
Especially when the two sides have bad talks, they will strengthen the contest on the battlefield, and the principle of both sides is "lost on the battlefield, don't think about fighting back from the negotiating table." History records that because there was nothing to talk about and had to talk about, the representatives of the two sides once staged a plot at the negotiating table without saying a word and staring at each other for several hours.
This kind of fighting and talking lasted until the signing of the armistice on July 27, 1953, a total of 2 years and 18 days. Taking history as a mirror, learning from the past and learning the new, and shopping malls like battlefields, this situation is repeating itself.
Now, we don't know how long and to what extent the Sino-US trade war, science and technology war, industrial war, and financial war will be fought. Nor do we know how long and to what extent the various negotiations between China and the United States will be discussed.
Meng Wanzhou's return to China is the result of a combination of talks and fights. We must remember that under the law of the jungle, natural selection, the survival of the strong, in the international political and economic contest, the strength speaks, the strong win.
Finally, let us conclude with a passage from General Secretary Xi Jinping's speech on the 100th anniversary of the founding of the Party:
"Chinese people are people who advocate justice and are not afraid of violence, and the Chinese nation is a nation with a strong sense of national pride and self-confidence. Chinese people have never bullied, oppressed, or enslaved the people of other countries, and they have not, and they have not, and they will not have. At the same time, the people of Chinese will never allow any foreign forces to bully, oppress, and enslave us, and whoever tries to do so will surely run into a bloody head in front of the great wall of steel built by more than 1.4 billion Chinese people! ”
I would like to thank the team members of the research team, Dr. Wu Ke, assistant dean and research assistant professor (associate researcher) of the Institute of Risk Analysis, Prediction and Control of Southern University of Science and Technology, Dr. Yang Jun, researcher of Xinrui University, and Zhao Hui, research assistant, for their contributions to this paper.