When a company is added to an unverified list, it usually means that it is not eligible to receive items subject to the Export Administration Regulations (EAR) due to a license exception.
Thirty-one Chinese companies and entities have been added to the US Department of Commerce’s “unconfirmed” export control list, according to a draft federal register.
“The Bureau of Industry and Security (BIS) is amending the Export Administration Regulations (EAR) by adding 31 people to the Unverified List (UVL). The 31 individuals were added to the UVL because the BIS was unable to verify their authenticity because an end-use assessment could not be satisfactorily completed for reasons outside the United States,” the statement said.
The Bureau of Industry and Security states that “Unverified List (UVL) are not eligible to receive items subject to the Export Administration Regulations (EAR) through a license exception. In addition, exporters must file an Automated Export System Record for all exports to parties listed in the UVL and obtain a statement from those parties before exporting, re-exporting, or transferring to such parties items that are subject to the EAR and are not subject to a permit requirement.
The inclusion of these Chinese companies and entities in the “unverified” list could therefore represent an important step towards their blacklisting.
The notice said the Bureau of Industry and Security “was not able to verify this [the companies’] in good faith because an end-use assessment could not be satisfactorily completed for reasons beyond the control of the U.S. Government.”
Listed entities and companies included Yangtze Memory Technologies Co., Ltd, Wuxi Biologics, University of Shanghai for Science and Technology, ShanghaiTech University and University of Chinese Academy of Sciences, most of which specialize in manufacturing, among others of biotechnology and scientific research.
Elsewhere, a US Commerce Department document to be released Oct. 13 said the country has tightened rules on supercomputer and semiconductor exports in relation to 28 Chinese companies.
“UNTIL [Bureau of Industry and Security] “expands controls to transactions involving items for end-uses in supercomputer and semiconductor manufacturing, for example, this rule expands the scope of foreign-made items subject to licensing requirements for twenty-eight existing Entity List companies located in China.” the document said.
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On Aug. 9, the Biden administration passed legislation providing around $280 billion in new funding to boost domestic semiconductor research and manufacturing in the United States.
Since then, amid growing tensions with China and Russia, the White House has recently signed several related decrees.
The Chinese embassy in Washington said Beijing “strongly opposed” the law because it appeared to be a “Cold War mentality.”
The US economy lost $240 billion last year due to the global shortage of microchips, and a war over Taiwan would be even more disastrous for the US due to its reliance on a single supplier, Taiwan Semiconductor Manufacturing Company (TSMC).
The US crackdown on the sale of technology to China has already had an impact when US chip designer Nvidia announced last week that it had been told by US officials to stop exporting two top computer chips for work recruit to China with artificial intelligence.
On September 7, it was reported that select companies funded by the initiative would be banned from setting up plants in China for ten years.
In recent days, the Biden administration has already struck big deals with tech giants.
Last month, Wolfspeed pledged to spend $5 billion on a new semiconductor plant in North Carolina.
Two days ago, Micron’s announced a $100 billion investment in semiconductor manufacturing in New York.
Yesterday it struck a $20 billion deal with IBM to initiate projects in the development of semiconductors, quantum computers and other cutting-edge technologies.
Despite the great hardship of American citizens, who suffered enormous material losses during Hurricane Ian, among other serious social problems, the Biden administration continues to prioritize investments in biotechnology and biomanufacturing.
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