Image Source : China Visual

BEIJING, March 3 (TMTPOST) —— The Bureau of Industry and Security (BIS) under the US Department of Commerce added 28 Chinese entities to its trade blacklist on Thursday local time.

Those included in the list include Chinese AI company 4Paradigm, China's largest server vendor Inspur Group, Chinese CPU vendor Loongson, and BGI-Shenzhen Group.

After the 28 Chinese entities were added to the trade blacklist, US companies were required to apply for permission from the US government to export, re-export, and transfer all products and technologies under the EAR to these entities.  The principle of presumption of denial is applied in about half of the 28 entities, which means the US government refuses to approve their licenses in principle, while license applications of the remaining entities should be viewed on a case-by-case basis.

In addition to the 28 blacklisted entities in Mainland China, there are four in Pakistan, three in Myanmar, and one each in Russia, Belarus, and China Taiwan. A total of 37 entities have been added to the updated list.

The blaklisted entities and individuals "threaten the national security of the United States", the BIS said. The export, re-export, or transfer (domestic) of items controlled under the Export Administration Regulations (EAR) to an entity on the above list requires permission from the BIS.  License applications will be reviewed according to related policies and other relevant terms of the U.S. EAR.

As the leading company in the information technology application innovation industry, Inspur has strong advantages and rich experience in government and state-owned enterprise services with its businesses in areas such as cloud data centers, cloud service big data, smart city, and smart enterprise. Inspur's share price has nearly doubled since the beginning of January but has seen a limit down after the news was released.

It is also reported in recent days that the United States may restrict Huawei's import of 4G equipment, which is undoubtedly worse for Huawei.

Alan Estevez, the Undersecretary of Commerce for Industry and Security, testified before the House Committee on Foreign Affairs on Capitol Hill on February 28, that the U.S. Department of Commerce and other government agencies approved 69.9 percent of applications for export licenses involving China in the 2022 budget year ending in September 2022, while rejecting or taking no action against about 30.1 percent of such applications.  The average U.S. government processing time for Chinese license applications is about 77 days, much longer than the average processing time for other countries, which is about 40 days.

There are more than 639 Chinese entities on the "entity list" controlled by the BIS, more than 155 of which were added to the list during the Biden administration.  Since July 2022, the BIS has added 53 Chinese entities to its trade blacklist. Regulated areas include artificial intelligence, chip semiconductors, biotechnology, and quantum computing.

China is firmly opposed to this approach and is urging the US side to respect the basic facts, discard its ideological bias, and stop using any excuse to suppress Chinese firms, to provide fair, just, and non-discriminatory treatment to Chinese companies, the ministry said in a statement posted on its website.

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