General

According to the news on the website of the Ministry of Commerce of China on July 11, the spokesperson of the Ministry of Commerce answered reporters’ questions about the US Department of Commerce’s inclusion of 23 Chinese entities on the “entity list” for export control.

The spokesperson said that the US has generalized the concept of national security, abused export control measures, ignored facts, and once again included 23 Chinese entities on the "entity list" on the grounds of so-called "human rights". This is an unreasonable suppression of Chinese companies and a serious breach of international economic and trade rules. China firmly opposes it. The U.S. should immediately correct its wrongdoing. We will take necessary measures to resolutely safeguard China's legitimate rights and interests.

Earlier, the US Department of Commerce announced on July 9 local time that the US had included 34 entities on its economic blacklist, including many entities from China, Russia, and Iran. Although the US Department of Commerce website did not disclose the list of relevant companies in the press release, the US Federal Government Gazette shows that there are 23 companies and individuals in China listed, including Suzhou Keda Technology Co., Ltd. and Hangzhou Hualan Microelectronics Co., Ltd. Companies, etc., the official effective date is July 12th.

As of press time, relevant A-share listed companies have responded. Raycus Laser announced that the company is concerned about relevant information. The US Department of Commerce believes Raycus Laser may participate in the procurement of unauthorized military end-use items originating in the United States, and that Raycus Laser is included in the entity list. The company continues to carry out the vertical integration of the industrial chain around the laser industry. The core components and materials are basically self-made, and a supply chain system with domestic manufacturers as the main body has been constructed. Therefore, the company’s inclusion in the entity list this time will not be normal for the company. Scientific research and production have a substantial impact. As of the close of last Friday, Raycus Laser closed at 104.55 yuan, down 3.06%, with a turnover of 238 million yuan and the latest market value of 30.11 billion yuan.

In addition to the Ministry of Commerce, the Ministry of Foreign Affairs of China also responded to the incident last Friday. On July 9, a Reuters reporter asked that the Biden administration will add at least 10 Chinese companies and entities to its "entity list" as early as Friday for alleged violations of human rights in Xinjiang and the use of high technology to implement surveillance. Is China aware of this? Any comment on this?

Wang Wenbin said that the so-called "entity list" of the United States is essentially a tool for suppressing certain Chinese enterprises and industries under the guise of human rights, and a means for the United States to "disrupt Xinjiang and control China with Xinjiang." China firmly opposes this. China will take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises and resolutely defeat the US attempt to interfere in China's internal affairs.

In recent years, the US Department of Commerce has repeatedly thrown out an "entity list." Since the Biden administration came to power, related actions have not stopped. In April this year, the United States included seven Chinese supercomputer entities on the so-called "entity list"; on June 23, it also included five so-called Chinese entities "involved in forced labor" on the export control "entity list."

On June 24, at a regular press conference held by the Ministry of Commerce, the spokesperson Gao Feng stated that the so-called "forced labor" issue in Xinjiang is completely contrary to the facts. The United States once again used national power to practice protectionism and bullying in the name of so-called "human rights." This is a serious damage to the international economic and trade order and a serious threat to the security of the global industrial chain and supply chain. The U.S. should immediately correct its wrongdoing. We will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises and institutions.