Editing by Li Panpan
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) added 33 Chinese companies to its “Unverified List (UVL)” on February 7, bringing the total number of companies from the Chinese mainland to 105 on the list.
Matthew Axelrod, the department’s assistant secretary for export enforcement, said that the addition of the 33 parties in China to the Unverified List will “assist U.S. exporters in conducting due diligence and assessing transaction risk, and signal to China the importance of their cooperation in scheduling end-use checks.”
Most of the 33 Chinese entities included in the list are electronics companies, including:
Chuzhou HKC Optoelectronics Technology Co., Ltd.:
Dongguan Durun Optical Technology Co., Ltd.;
Dongguan Huiqun Electronic Co., Ltd.;
Guangdong Guanghua Sci-Tech Co.;
Guangzhou Hymson Laser Technology Co. Ltd.;
Heshan Deren Electronic Technology Co., Ltd.;
Hubei Sinophorus Electronic Materials Co. Ltd.;
Suzhou GYZ Electronic Technology Co., Ltd.; Jinan Bodor CNC Machine Co., Ltd.;
Shanghai Micro Electronics Equipment (Group) Co., Ltd.
Being on the list means they face stricter rules on doing business with American companies.
Although the A-shares listed Hymson slid 8.46% by February 8, it said in a statement that the addition would not have any significant or adverse effect on its operations or financial situation for two reasons.
Firstly, the listing of its branch will not affect the parent company and other branches. Secondly, statistics show that the branch purchased about RMB2.45 million ($385,000) in 2021, of which the amount imported from the US was RMB156 000 ($24,510), a tiny proportion. The operating income of the branch is about RMB4.5 million ($707,140), with zero from the U.S.
Other involved A-share companies haven’t replied to the news. Their stocks all fell to varying degrees by February 8. Guanghua Technology and GYZ fell 0.35% and 0.49%, respectively.
In addition, DEREN Electronics and Xingfa Group stocks, both with branches in the list, fell 2.15% and 0.61%.
