US to add more Chinese companies to investments, export blacklists – FT

Dec. 15 (Reuters) – Shares of Chinese healthcare and tech companies fell on Wednesday after a report the United States would add more Chinese companies, including the largest maker of commercial drones and biotech firms , to investment and export blacklists this week.

The Financial Times reported, citing two sources with knowledge of the plans, that the United States would add eight Chinese companies, including the world’s leading commercial drone maker DJI Technology Co Ltd, to an investment blacklist on Thursday.

The US Department of Commerce is also expected to include Thursday more than two dozen Chinese companies, some involved in biotechnology, on a “list of entities” restricting exports to them by American companies, according to the newspaper citing these sources.

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The report accelerated the sell-off of Chinese healthcare stocks in afternoon trading, pushing a continental index following sector (.CSI300HC) down 3.2% against a decline of 0.87% in the afternoon trade. larger index.

The impact was even more pronounced in Hong Kong, where the Hang Seng Healthcare Index (.HSHCI) fell 7.6% in the late afternoon.

Healthcare companies had already been under pressure on Wednesday after Chinese biotech firm BeiGene Ltd plunged into its Shanghai debut on Wednesday amid concerns that some Chinese companies were being told to withdraw from the stock market. American. Read more

The Financial Times reported that the US Treasury Department would put eight companies, including DJI, on its blacklist of “Chinese military-industrial complex companies” on Thursday because of their alleged involvement in monitoring the Uyghur Muslim minority.

US investors are prohibited from taking stakes in the companies on the list, which currently cites around 60 companies.

A DJI spokesperson declined to comment on the FT report, but directed Reuters to the company’s statement when it was added to the US Department of Commerce’s “entity list” a year ago for them. same reasons. This list prohibited the company from purchasing or using American technologies or components.

At the time, DJI said it had done nothing to justify the decision and would continue to sell its products in the United States, where it has built up a large market.

The US Treasury did not immediately respond to a request for comment from Reuters.

The new additions would come just days after artificial intelligence startup SenseTime Group was placed on the same Treasury list, which led the company to postpone its initial public offering (IPO) of $ 767 million to Hong Kong. SenseTime said the charges against him were baseless.

UN experts and rights groups estimate more than a million people, mostly Uyghurs and members of other Muslim minorities, have been detained in recent years in a vast system of camps in the region. from Xinjiang, in the far west of China.

Some foreign lawmakers and parliaments have called the treatment of Uyghurs genocide, citing evidence of forced sterilizations and deaths inside the camps. China denies these claims and claims that the growth rates of the Uyghur population are above the national average.

The FT named the other companies added to the list as image recognition software company Megvii, supercomputer maker Dawning Information Industry, facial recognition specialist CloudWalk Technology, cybersecurity group Xiamen Meiya Pico, the company of artificial intelligence Yitu Technology and the cloud computing companies Leon Technology and NetPosa Technologies.

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Reporting by Shivam Patel in Bengaluru, additional reporting by David Kirton in Shenzhen and Andrew Galbraith in Shanghai; Editing by Tom Hogue, Jane Wardell and Michael Perry

Our Standards: Thomson Reuters Trust Principles.

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