The United States has no reason to suppress Chinese enterprises!
According to the US media quoted by globegroup, the Biden government listed 33 Chinese entities on the “unverified list” of the Ministry of Commerce on the 7th, imposed new restrictions on these entities’ access to products from US exporters, and asked us companies that want to do business with these Chinese companies to conduct additional investigations.
The report said that companies included in this list must accept stricter export controls because U.S. officials are unable to conduct routine verification. The list includes high-tech manufacturers such as YaoMing biology, laser equipment manufacturers, drugs and government laboratories. The U.S. Department of Commerce said that these companies have problems in compliance with regulations, so they restrict U.S. enterprises from exporting regulated technology or doing business with them.
Yaoming biological emergency response said that the “unverified list” is not a more well-known American “entity list” or “blacklist”. We welcome to check at any time to remove from such lists. We are also taking interim measures to remove these subsidiaries from the list before inspection.
Affected by this, the Hong Kong stocks of YaoMing biology fell by nearly 30% at the opening, and the A shares Wuxi Apptec Co.Ltd(603259) fell by the limit at the opening. So, how big is this negative impact?
another black hand from the United States
According to U.S. media reports, the Biden government on the 7th included 33 Chinese entities in the “unverified list” of the Ministry of Commerce, imposed new restrictions on these entities’ access to products from U.S. exporters, and asked U.S. companies wishing to do business with these Chinese companies to conduct additional investigations. China’s foreign ministry has previously said that China has always opposed the US’s actions of generalizing the concept of national security and unreasonably suppressing Chinese enterprises.
It is reported that the Bureau of industry and security (BIS) of the US Department of Commerce issued a statement on the 7th local time, announcing that 33 entities headquartered in China will be included in the so-called “unverified list”. The report said that companies included in this list must accept stricter export controls because U.S. officials are unable to conduct routine verification.
According to US media reports, most of the companies included in this list are electronic companies, but there are also optical companies, a wind turbine blade company, the National Laboratory of the University and other companies. After the 33 Chinese entities were included, the total number of entities on the list reached about 175. Other countries with entities on the list include Russia and the United Arab Emirates.
250 billion Yaoming biological plummeted by 30%
because Yao Mingsheng is on this list, the stock fell sharply at the opening of the market today. The Hong Kong shares of YaoMing biology with a market value of more than HK $250 billion plunged 30% at the opening of the market.
A shares Wuxi Apptec Co.Ltd(603259) also sealed the limit.
In this regard, the pharmaceutical research team of Chinese securities companies said that on February 7, 33 Chinese units were added to the “unverified list (UVL)” on the official website of the US Department of Commerce, including Yaoming biology. The United States has a strict and clear system of export control laws and regulations. According to the provisions of the export administration regulations (ear), for dual-use controlled items that need a license before they can be exported, enterprises need to apply to the government department and obtain a license after approval. After being listed, the export, re export or transfer of U.S. raw product items to the purchasers, intermediate consignees, end consignees or end users listed in UVL list shall not enjoy any license exceptions, and a “UVL declaration” must be issued.
Main scope of influence: including bioreactors and other relevant containers and chemicals with potential to manufacture biological and chemical weapons.
Reason for inclusion: BIS is unable to complete end use verification to confirm the “good faith” of these entities, or has conducted end use verification but cannot confirm their “good faith”. Including whether to cooperate with the investigation, whether to contact the entity, etc. The outbreak may block the investigation, making it impossible to verify whether it is “good faith”.
Whether and when to remove the list: enterprises listed in UVL can take relevant measures to strive for removal from the list. Generally, removal takes several months.
In December 2021, the U.S. Department of Commerce announced that dozens of Chinese units would be added to the entity list, including some biotechnology companies. At that time, the stock price of YaoMing Department plummeted. Finally, the entity list released in December did not include biomedical companies or cdmo companies, but the Academy of Military Sciences and 11 subordinate research institutes. This time, the US Department of commerce still blacklisted Yaoming biology, but it is not an entity list, but an unverified list.
This morning, Yaoming biological emergency response said that the “unverified list” is not a more well-known American “entity list” or “blacklist”. We welcome to check at any time to remove from such lists. We are also taking interim measures to remove these subsidiaries from the list before inspection.
According to WeChat official account, according to Armstrong bio medicine information, the drug department has completed many domestic alternative layout. In October 2019, the medicine and biology control company was 300 million 600 thousand yuan holding Boglon, Wuxi Apptec Co.Ltd(603259) shares Suzhou Nanomicro Technology Co.Ltd(688690) , and there are many layout in the media autonomy. In addition to purification fillers, domestic media, reactors, purification equipment, membrane materials and analytical instruments have made rapid progress in recent years. The domestic substitution of key reagents, consumables, equipment and instruments has become the general trend.
Recently, the United States has continued to attack at the same time politically, economically and militarily. US Secretary of state Antony Blinken said on Monday that the United States and Europe are working together to protect European energy supply from shocks, including the impact of Russia’s further invasion of Ukraine. Josep Borrell, EU high representative for foreign and security policy, said that Europe was facing the most dangerous moment since the cold war.
German Chancellor Olaf Scholz visited the United States for the first time after taking office and met with US President Biden. On Monday, Scholz broke the pro Russian doubts and described virtue as his closest ally. He assured Biden that Germany stood with the United States and other NATO allies against any Russian aggression against Ukraine. Biden said: “the United States and Europe are working together to stop Russian aggression… If Russia starts a war, we will stop Beixi 2 gas pipeline as a counter measure.”
Sudden collapse! 300 billion Wuxi Apptec Co.Ltd(603259) fell by the limit in one minute at the opening. Hong Kong stock Yaoming biology fell by more than 30%. What’s the situation?
Yao Mingsheng: “unverified list” is not a well-known “entity list” or “blacklist” of the United States
Yaoming biological executives: the company is ready to negotiate with the U.S. Department of Commerce on the listing of UVL
Wuxi Apptec Co.Ltd(603259) : neither the company nor its subsidiaries are listed in the “unconfirmed list” by the U.S. Department of Commerce
