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August 23rd, local time,The Bureau of Industry and Security (BIS) under the U.S. Department of Commerce has added another 123 entities to the "Entity List", including 42 Chinese companies and institutional entities (including Hong Kong, China), and imposed export controls on these entities.

The entities included in this round of list are mainly electronic component distributors in the field of chip semiconductor industry chain, including listed company Fuman Microelectronics Group Co., Ltd. (300671.SZ), wireless leader Hytera (002583.SZ), etc. In addition, there are more than 70 companies with overseas addresses in the list, covering countries and regions such as Ukraine, Iran, Kazakhstan, Kyrgyzstan, Russia, Turkey, Ukraine and the United Arab Emirates.

BIS stated in the document that the reason for adding the above 123 entities is that these entities are related to, have supplied or cooperated with Russia's unmanned aerial vehicle (UAV) program and/or Russian military industry. As part of a new round of sanctions against Russia, these entities have been determined by the US government that their actions violate the national security or foreign policy interests of the United States.

According to BIS regulations, after the above 42 Chinese entities are included in the "Entity List", US companies need to apply for a license from the US government when exporting, re-exporting, and transferring all products and technologies under the EAR to these entities. At the same time, the US Department of Commerce adopts the "presumption of denial" principle for Chinese entities, that is, in principle, it refuses to approve licenses. In addition, BIS has also exercised long-arm jurisdiction and implemented the "Foreign Direct Product Rule" (FDP) on these entities, that is, products directly produced using software and technology controlled by the US Export Administration Regulations (EAR) require a US license even if they are not produced in the United States.

According to US Secretary of State Antony Blinken, as of now, more than 1,300 Chinese entities have been included in the "Entity List" by the US government, covering cutting-edge technology fields such as AI, chips, and quantum computing.

In addition, also early this morning Beijing time (August 24 is Ukraine's Independence Day), the U.S. Treasury Department and the State Department announced the implementation of the "Specially Designated Nationals List" (SDN) sanctions on about 400 entities in Russia and other regions under the Russia-related sanctions project, including 42 Chinese (including Hong Kong) entities and individuals. This is the fourth large-scale increase in the U.S.-related SDN list after February, May, and June this year.

The U.S. Treasury Department said:The sanctioned entities include Chinese companies that produce machine tools and microelectronics, as well as entities that purchase ammunition and other materials for Russia and help Russian oligarchs and others evade sanctions.

At the "Dialogue on Enhancing Security and Prosperity in the Indo-Pacific Region" in July this year, Blinken stated that there are indeed many areas where China and the United States have major differences, and it is important to have dialogues to ensure that at least we understand each other and know each other's positions, even if we disagree.

"Because even as we take the steps we believe are necessary to protect our security, we also want to make sure that we don't undermine or inhibit trade, which is incredibly important. It brings investment, progress and opportunity to people around the world. So, when it comes to 'small courtyards and high walls,' it does make sense - and I've said this directly to Chinese officials - that there is reason for us to work to ensure that when it comes to the most cutting-edge technology," Blinken said.

According to Alan Estevez, the U.S. Department of Commerce's deputy secretary for industry and security, from January 2021, when Biden took office, to July 2022, the U.S. Department of Commerce added 53 Chinese entities to the "Entity List", and by February 2023, the number of Chinese entities included in the "Entity List" during Biden's tenure had increased to 155. This means thatOver the past three years, more Chinese entities have been included in the “Entity List” every year.Of the U.S. export license applications to China, approximately 69.9% were approved, while the remaining applications were rejected or returned.

Ukrainian President Volodymyr Zelensky tweeted on Friday that the move would further weaken Russia's ability to "wage a war of aggression against Ukraine." "As long as Russia continues its aggression, the pressure on the aggressor must be maintained and constantly increased."

Regarding the topic of the US "Entity List", Chinese Foreign Ministry spokesman Lin Jian has repeatedly stated thatChina has always firmly opposed the US's abuse of export control tools such as the Entity List to contain and suppress Chinese companies.China and Russia have the right to carry out normal economic and trade cooperation, and such cooperation should not be interfered with or restricted. For a long time, the United States has used the so-called "national security risks" as an excuse to suppress Chinese companies, but has never been able to produce the so-called evidence. We urge the United States to stop generalizing the concept of "national security", stop politicizing, instrumentalizing and weaponizing economic, trade and technological issues, stop abusing various sanctions lists and unreasonably suppressing Chinese companies. China will continue to take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese companies.

On the morning of August 24, Foreign Ministry Spokesperson Mao Ning announced that US President’s National Security Advisor Jake Sullivan will visit China from August 27 to 29 to hold a new round of China-US strategic communication.

The following is a comparison of the Chinese and English names of the 42 entities included in the U.S. Department of Commerce’s “Entity List”:

3-K Electronics Limited,

Address 09,

Address 10,

Address 11,

AllChips Limited,

BuyBest Electronic,

Chipgoo Electronics Limited,

Cinty Int'l (HK) Industry Co., Limited,

Cloudmax Tech Co., Limited, (Shenzhen Cloudmax Technology Co., Ltd.)

DGT Technology (HK) Co., Limited,

Eastech Electronics Limited,

Furuida Heilongjiang Supply Chain Management Co., Ltd.,

Grun Group Co., Limited,

Hong Kong Haiheng Electronics Co. Ltd.,

Hong Kong Qisu Electronic Technology Co. Ltd.,

Hong Kong Yayang Trading Ltd.

Hongkong Inkson Technology Limited,

Hytera Communications Limited,

ICsole Technology Limited,

Incomp Limited,

Kvantek Limited,

Lett Tronic Group Limited,

LL Electronic Limited,

MAK Logistics,

Megatek Ltd.,

Mei Xin Electronic (HK) Co., Limited,

Midas Lighting Limited,

Minhoo Logistics Limited,

O-Nice Trading Co. Limited,

Piraclinos Limited,

RYX Electronic (HK) Limited,

Shenzhen Bailiansheng Electronic Science and Technology Co., Ltd,

Shenzhen BZ Space Technology Co., Ltd.,

Shenzhen Dongpengshang Electronics Co., Ltd.,

Shenzhen SCH Technology Co., Ltd.,

Siliborn Technology Limited,

Superchip Limited,（Fuman Microelectronics Group Co., Ltd.）

Tehran Pishro Trading Co.,

Tengxuxing Electronic Technology HK Limited,

Wellgo International Industrial Limited,

Yield Bright Industrial Limited,

Yusha Group Co. Ltd.

The following are the 28 entities and individuals in this round of SDN China by the U.S. Treasury and State Department: (Chinese names are transliterated from the U.S. Treasury official website)

BEIJING TIMINGTRON CORPORATION

RUI EN KOO TECHNOLOGY CO LIMITED (RUI EN KOO TECHNOLOGY CO., LTD.)

HWACHENG CO LIMITED

Interasia Trading Group Limited

Hong Kong Yayang Trading Limited

Kira International Trade Co Limited

Most Development Limited

New Wally Target International Trade Co Limited

Smart Kit Technology Limited

Siliborn Technology Limited

YLH Electronics HK Co Limited

Hongkong Chip Line International Co

Hengye Tech Limited

Fepood Electronics HK Co Limited

Xin Quan Electronics Co Limited

LETT TRONIC GROUP LIMITED (LETT TRONIC GROUP LIMITED),

SHENZHEN SHENCHUANGHUI TECHNOLOGY CO LTD (SHENZHEN SHENCHUANGHUI TECHNOLOGY CO LTD)

Shenzhen Royo Technology Co Limited

HK Cinty Co Limited

Asia Material Solutions Company Limited

Zvigeni Technological Systems Limited

Dougong Trading Hong Kong Limited

Universal Gold Hong Kong Limited

Bright Universe International Limited

AGU INFORMATION TECHNOLOGY CO LIMITED (AGU INFORMATION TECHNOLOGY CO., LTD.),

YIWU WEISHUO IMPORT AND EXPORT CO LTD (Yiwu Weishuo Import and Export Co., Ltd.)

ALICE COMPONENTS CO LIMITED (Alice Components Co., Ltd.),

DONGGUAN BINONG TECHNOLOGY CO LTD (Dongguan BINONG Technology Co., Ltd.)

DONGGUAN SHENGYIN CNC EQUIPMENT CO LTD

M STAR INTERNATIONAL TRADING CO LTD

GUANGZHOU CHIPHOME INFORMATION TECHNOLOGY LIMITED

Jinhua Hairun Power Technology Co Ltd

SHENZHEN HUASHUO SEMICONDUCTOR CO LTD (SHENZHEN HUASHUO SEMICONDUCTOR CO LTD)

CHENGDU JINGXIN TECHNOLOGY CO LTD (Chinese Simplified: Chengdu Jingxin Technology Co., Ltd.)

Qingdao Hehuixin International Trade Co Ltd

Foshan Golden Age Motor Technology Co., Ltd

Shanghai Techinital Materials Co Ltd

SHANGHAI OCEANEN ENVIRONMENTAL SCIENCE AND TECHNOLOGY CO., LTD. (Shanghai Oceanen Environmental Science and Technology Co., Ltd.)

YLH Electronics HK Co Limited (HK & PRC BASED)

NOVATEK CHINA HOLDINGS CO LTD (Novatek China Holdings Co., Ltd.)

GENERAL TECHNOLOGY GROUP DALIAN MACHINE TOOL IMPORT & EXPORT CO LTD)

YANG, Liu，Passport E12074567 (China Linked To: SHANGHAI OCEANEN ENVIRONMENTAL SCIENCE AND TECHNOLOGY CO., LTD.).