More Chinese Companies Added to US “Blacklist”
More Chinese enterprises have been officially placed on the US blacklist, a move that will surely have an influence on relations between the two sides. Come take a look at our article to learn more about this move.
US investors have already been barred from investing in a total of 60 Chinese companies that have been placed on the US blacklist. The Biden administration added eight additional Chinese corporations to its list last week, a move that China has threatened to reciprocate. This move will undoubtedly impact relations between the two countries as well as trade.
Drone, AI, and Biotech Firms Are Some of Those Added to the Blacklist
The companies added to the list will be prevented from benefiting from US investment and technology, due to allegations over their support of China’s surveillance of the Uyghur Muslim minority. Some important companies are also on the list, including DJI, the world’s largest commercial drone maker, SenseTime Group, an intelligence start-up that delayed its $767-million Hong Kong initial public offering (IPO), and several major biotech enterprises.
Chinese Biotechnology May Suffer
China is concerned that additional companies may be added to the list, which is causing havoc on the share values of Chinese companies, particularly those in the healthcare industry. Fears were recently stoked by the US Department of Commerce’s decision to place more than 20 Chinese businesses on a "entity list," which places limitations on US companies' abilities to export goods to them. Many biotechnology businesses are also included on this list, which could have an impact on China's thriving biotechnology industry.
The US commerce department intends to use the blacklist and entity list to restrict trade and prevent the Chinese military from developing counter-stealth technology. It also wants to stop China from developing technology to break or establish unbreakable encryption with the help of US materials.
Action against Genocide
The Uyghurs, of whom roughly 12 million live in Xinjiang, speak their own language and view themselves as culturally close to Central Asian nations. In recent years, China’s ethnic majority (the Han Chinese) have increasingly moved into Xinjiang as part of what is believed to be a deliberate mass migration led by the state to dilute the Uyghur population.
The UN has estimated that China has detained over a million people in recent years, mostly Uyghurs, in camps in the far west of Xinjiang. The US, Canada, and the Netherlands are just some of the countries that have accused China of committing genocide of the Uyghurs, an intent to destroy a national, ethnical, racial, or religious group.
Reports of forced sterilizations of the Uyghurs and deaths occurring inside the camps have fueled concerns over the safety and treatment of the Uyghurs in China. Although Chinese authorities deny these claims, stating that the Uyghur population is, in fact, growing faster than the national average, many countries are taking a stance against China, with the US declaring that the Chinese government was committing genocide against the Uyghur people in July.
In response to the blacklist that has subsequently been created by the US, Zhao Lijan, China’s foreign ministry spokesman, said that China was opposed to US suppression, and that the country would closely monitor the developing situation. Some experts predict China will take significant steps to retaliate.
What the outcome of the situation will be, remains unclear. It is possible that more countries will be blacklisted and that China will retaliate. Trade between the two countries will likely suffer but many see it as an important stance against the alleged crimes of China against the Uyghurs.
Learn More with Export Portal
Found this article informative? Read more about how other nations are responding to China’s treatment of the Uyghurs, such as Canada’s withdrawal from free-trade talks or Australia's report of forced labor in Xinjiang.
Comments 2