WASHINGTON — The United States has added 13 companies in China to a list of entities receiving US exports that officials have been unable to inspect, according to a government notice posted on Tuesday (Dec 19).
Companies are placed on the “Unverified List” when US export control officers cannot complete on-site visits to determine whether they can be trusted to receive US-origin technology and other goods. US inspections of Chinese companies require the approval of China’s commerce ministry.
US exporters are required to conduct additional due diligence before sending items to companies on the list, which serves as a red flag, and may have to apply for more licenses.
Additions to the list include PNC Systems in Jiangsu, Beijing Shengbo Xietong Technology, Guangzhou Xinwei Transportation and Plexus in Xiamen.
The list is one tool the US is using to stop sensitive American goods and technology from falling into the wrong hands. It has also issued sweeping restrictions on shipping advanced semiconductors and chip making equipment to China to keep US technology from China’s military modernisation. The tech battle has escalated tensions between the countries.
“The United States has been generalising the concept of national security, adopting discriminatory and unfair practices against specific Chinese companies, and politicising and weaponising economic and trade issues,” Mr Liu Pengyu, a spokesperson for the Chinese embassy in Washington, said in a statement after Tuesday’s actions. “The inclusion of Chinese companies in the ‘unverified list’ is another example.”
Under a Biden administration policy, if a foreign government prevents US officials from conducting site checks at companies on the Unverified List, Washington will start the process of adding them to the more restrictive “Entity List” after 60 days.
The US removes companies from the Unverified List after successful checks take place, as it did with four companies on Dec 15.
Wuxi Biologics, a Chinese maker of ingredients for AstraZeneca’s Covid-19 vaccine, lost nearly US$10 billion (S$13.3 billion) in market value after two of its units were added to the Unverified List in February 2022.
Months later, after Reuters exclusively reported that Chinese authorities allowed a US inspection of the company facility in Wuxi, the company’s shares jumped over 12 per cent. The facility came off the list that October.
The other companies put on the Unverified List on Tuesday include Beijing Jin Sheng Bo Yue Technology, Fulian Precision Electronics in Tianjin, Guangzhou Xinyun Intelligent Technology, Nanning Fulian Fu Gui Precision Industrial, Ningbo MOOF Trading, Shenzhen Bozhitongda Technologic, Shenzhen Jia Li Chuang Tech Development, Shenzhen Jingelang, and Xi’An Yierda. REUTERS