The Biden Administration in Washington has added 13 Chinese companies to a list of entities receiving US exports that officials have been unable to inspect.
Companies are placed on the “Unverified List” when US export control officers cannot complete on-site visits to find out if they can be trusted to receive US-origin technology and other goods. US inspections of Chinese companies require the approval from China’s commerce ministry.
The latest additions to the list, which is a tool the US uses to stop sensitive American goods and technology from falling into the wrong hands, were posted on a government notice on Tuesday.
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New additions to the list include PNC Systems in Jiangsu, Beijing Shengbo Xietong Technology, Guangzhou Xinwei Transportation and Plexus in Xiamen.
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 licences.
It has also issued sweeping restrictions on shipping advanced semiconductors and chip-making equipment to China to keep US technology from China’s military modernization. The tech battle has escalated tensions between the countries.
US is ‘weaponizing trade’, China says
“The United States has been generalizing the concept of national security, adopting discriminatory and unfair practices against specific Chinese companies, and politicizing and weaponizing economic and trade issues,” 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 firms 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 December 15.
Wuxi Biologics, a Chinese maker of ingredients for AstraZeneca’s Covid-19 vaccine, lost nearly $10 billion in market value after two of its units were added to the Unverified List in February 2022.
Months later, after a report that Chinese authorities allowed a US inspection of the company facility in Wuxi, the company’s shares jumped over 12%. 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 with additional editing by Jim Pollard
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