US adds 13 companies in China to Unverified List (updated)

Plexus

19/12/2023 14:17

(Adds more company names in paragraph 11, background starting
in paragraph 2)
    By Karen Freifeld
       WASHINGTON, Dec 19 (Reuters) - The United States has
added 13 companies in China to a list of entities receiving U.S.
exports that officials have been unable to inspect, according to
a government notice posted on Tuesday.
    Companies are placed on the "Unverified List" when U.S.
export control officers cannot complete on-site visits to
determine whether they can be trusted to receive U.S.-origin
technology and other goods. U.S. inspections of Chinese
companies require the approval of China's commerce ministry.
        U.S. exporters are required to conduct additional due
diligence before sending items to companies on the list and may
have to apply for more licenses.
  
        Additions to the list include PNC Systems in Jiangsu,
Beijing Shengbo Xietong Technology, Guangzhou Xinwei
Transportation and Plexus in Xiamen.
  
    Under a Biden administration policy, if a foreign government
prevents U.S. officials from conducting site checks at companies
on the unverified list, Washington will start the process of
adding them to the more restrictive "Entity List" after 60 days.
    The U.S. removes companies from the Unverified List after
successful checks take place, as it did with four companies on
Dec. 15.
        Wuxi Biologics  2269.HK , 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 
    Reuters exclusively reported
     that Chinese authorities allowed a U.S. inspection of the
company facility in Wuxi, the company's shares jumped over 12%.
The facility came off the list that October.
  
        A spokesperson for the Chinese embassy in Washington did
not immediately respond to a request for comment. Last year,
China's Ministry of Commerce slammed the addition of other
companies to the list and said Washington should correct its
"wrongdoings" and return to the track of cooperation.
        The other companies put on the Unverified List on
Tuesday are 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.
  

 (Reporting by Karen Freifeld in New York; Additional reporting
by Doina Chiacu in Washington; Editing by Susan Heavey and
Richard Chang)
 ((doina.chiacu@thomsonreuters.com; 202-898-8322))