The US Defense Department blacklisted Dajiang and BGI

2022-10-07

The US Defense Department blacklisted Dajiang and BGI

Dajiang Innovation was blacklisted as an entity by the Bureau of Industry and Security of the US Department of Commerce at the end of 2020
(From the official website of Dajiang Innovation)

On Wednesday (October 5), the US Defense Department blacklisted 13 Chinese enterprises, including Dajiang Innovation and BGI, on the grounds of their close relationship with the Chinese military.

According to the official website of the US Department of Defense, the US Department of Defense released a press release on the 5th, saying that the US Department of Defense is determined to specify and counter the "military civilian integration" strategy of the People's Republic of China, which supports the PLA's modernization goal by acquiring advanced technologies and expertise owned and developed by these institutions through Chinese enterprises, universities and research plans that look like civilian institutions. Contributors to these "civil military integration" strategies (civilian agencies) operate directly or indirectly in the United States.

The press release said that the U.S. Department of Defense will continue to update the list and add additional entities in due course. The United States Government reserves the right to take additional action against these entities pursuant to an authorization other than Section 1260H (the "Defense Authorization Act").

The 2021 National Defense Authorization Act (NDAA), passed by the U.S. Congress last year and signed into law by the President, clearly requires the U.S. Department of Defense to blacklist companies that may have direct or indirect business dealings with the United States, have close relations with the Chinese military, or actively participate in China's "military civilian integration" strategy. The US Department of Commerce can restrict US companies from doing business with these Chinese enterprises blacklisted by the US Department of Defense, including investment.

Last June, the US Department of Defense released the blacklist of the first 47 Chinese enterprises that have close relations with the Chinese military or actively participate in China's "military civilian integration" strategy, including Huawei and Hikvision. On the 5th, the US Department of Defense announced the second batch of blacklists of Chinese enterprises, including Dajiang Innovation and BGI, which included 13 enterprises.

Those blacklisted by the US Department of Defense are basically China's leading high-tech enterprises or colleges and universities with super influence.

According to public information, Dajiang Innovation is headquartered in Shenzhen and has offices in the United States, Germany, the Netherlands, Japan, Australia, Beijing and Hong Kong. As of October 2020, Xinjiang has occupied more than 80% of the global civil and business UAV market, ranking first among the global commercial UAV enterprises. Dajiang UAV was also purchased and used by the US Department of Defense. By the end of 2020, Dajiang was included in the entity blacklist by the Bureau of Industry and Security of the US Department of Commerce.

BGI was founded in 1999, headquartered in Shenzhen, and listed on the Shenzhen Stock Exchange's Growth Enterprise Market in 2017. The company provides research services and comprehensive solutions for precision medical detection for medical institutions, scientific research institutions, social health organizations, etc. through gene detection, mass spectrometry detection, biological information analysis and other multi group big data technologies. BGI ranked first in the natural index ranking of 2016 among life science industry institutions in the Asia Pacific region.

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