The 8 technology companies are listed in the entity list by the United States.
writing Wang Leisheng, Chinese entrepreneur
edit Li Wei
Rumors that lasted for many months were confirmed.
Beijing time on October 8th, the Ministry of Commerce and industry and Safety announced that 28 Chinese enterprises and government organizations should be included in the entity list, including Hikvision, HKUST flight, Shang Tang technology, Kuang Shi technology, Yi technology, Zhejiang Dahua, Maya Bai Ke, Yi Xin Technology and other 8 technology companies.
The entity list is the blacklist of US trade controls. Simply speaking, it is a "blacklist". Once entering this list, it means depriving the relevant enterprises of their trade opportunities in the United States. Before the license is granted, the exporters of the United States shall not help the enterprises on the list to get any items under the jurisdiction of this Ordinance.
In response to the actions of the US Department of Commerce, as of press release, Hikvision, HKUST flight, Kuang Shi technology, Shang Tang technology, and Maya Bai Ke and other companies issued a statement that they strongly opposed or protested the fact that they were listed in the entity list.
The market has long been rumoured about the US's "ban" on Chinese technology enterprises.
In May 22nd this year, Bloomberg quoted sources as saying that the United States is considering the inclusion of Hikvision, Zhejiang Dahua, Shang Tang technology, Kuang Shi technology and technology based on the entity list.
Chinese entrepreneurs have verified the above mentioned enterprises. At that time, Shang Tang technology and Kuang Shi technology indicated that the reports could not be confirmed, and the specific circumstances were still being verified. Today, rumors about the listed companies are listed on the entity list.
The timing of the announcement of the US entity list is very subtle.
October 8th is the first working day after the end of China's National Day holiday. More importantly, Liu He, member of the Political Bureau of the CPC Central Committee and vice premier of the State Council and the leader of the Sino US comprehensive economic dialogue, will lead the delegation to Washington from October 10th to October 11th to hold a new round of high-level consultation on Sino US trade and economic cooperation.
However, some media quoted the response from the US Department of commerce that the announcement of the entity list has nothing to do with China's resumption of trade negotiations.
In view of the fact that many enterprises in China are listed in the entity list by the US, AI (AI) industry experts interviewed in the interview with "China entrepreneur": "this incident may lead to some global layout enterprises in the short term, but in the long run, it will accelerate the development of China's self research technology."
News broke out on the morning of October 8th, and Hikvision and Dahua shares immediately announced a suspension.
Huang Fanghong, senior vice president and deputy director of Hikvision, said:
"Strongly objected to the fact that the United States Department of Commerce has incorporated the company into the entity list. This decision is not based on facts. It calls on the US government to re-examine the principle of fairness, impartiality and non discrimination, and move Hikvision out of the entity list.
"The decision of the United States government will also seriously damage the interests of the local enterprises and many industry participants, and will take all reasonable and appropriate relief programs to safeguard the rights and interests of the company and its partners.
"At the same time, the company will implement all aspects of the response plan, the company has the ability to continuously and steadily provide customers with quality products and services."
Hikvision also issued two announcements, saying it was assessing the impact and decided to hold an investor telephone briefing on the afternoon of 9.
Kuang Shi technology and Shang Tang technology were released today at 11 and 12 points respectively. Kuang Shi Technology wrote in the notice: "today, the US Department of Commerce has made a strong protest against this decision without any fact based case."
Shang Tang also expressed its position with "strong opposition". In a statement, he said: "we strongly oppose the US Commerce Department's listing of technology in the entity list, and call on the US government to review it again."
The two AI stars unicorns have complied with the laws and regulations of relevant countries and regions, and have strictly implemented relevant policies and ethical standards.
"In view of the behavior of the US Department of Commerce, we will adopt a response plan in all aspects and continue to provide stable and high-quality services to customers with professional, reliable technology and products. We will keep in touch with the US government and the Ministry of Commerce and update the relevant information in real time. Kuang Shi said in the announcement.
In response to the incident of "Chinese entrepreneur", the relevant people of Shang Tang technology emphasized that "Shang Tang insists on original technology and independent research and development of core technology". Therefore, "being listed in the entity list has no significant impact on the daily operation of Shang Tang technology", and Shang Tang also has plans for this, and will continue to provide products and services to customers as usual.
In the announcement, the HKUST spokesman also said: "the technology of HKUST's all flying technology comes from independent research and development, and will not be included in the entity list. It has a significant impact on the day-to-day operation of HKUST. "
Maya In the interview with the securities times e, the company said: "the main supporting hardware products purchased by the company are general and commercial related machines and modules, with strong replaceability and the vast majority of suppliers are domestic manufacturers. The main customers of the company account for a small proportion of overseas sales revenue, less than 1% of the company's sales revenue.
A matter of concern is what aspects of the AI related technology companies will be affected by the unilateral inclusion of the entity list by the United States?
Some of the core hardware may be the first to bear.
In the prospectus submitted at the end of August this year, Kuang Shi technology indicated that its intelligent hardware products may be limited, including the central processing unit (CPU), graphics card (GPU) and memory (including storage and flash memory).
Among them, Intel and AMD occupy the vast majority of CPU market share. NVIDIA is the absolute leader in the GPU field, with a market share of 75%, and GPU is also the most important hardware source of AI.
"Besides CPU, GPU and storage hardware, and TensorFlow, Auto ML and other software technologies may also be limited to use, just like HUAWEI is restricted to Google framework." The foregoing AI insiders analyzed "Chinese entrepreneurs". "At present, there are some AI chips, memory chips and deep learning frameworks developed in China, but the effect is worse."
In fact, in the prospectus submitted in August, Kuang Shi technology showed that it was ready to be included in the "entity list".
"Media coverage has damaged our reputation and distracted our management. Whether we will become the target of economic and trade restrictions is beyond our control. If we are subjected to any of the above economic and trade restrictions, we may avoid purchasing certain goods and technologies. " Kuang Shi Technology wrote in the prospectus.
The prospectus of open technology also pointed out that the potential impact of the restriction was analyzed, the compliance mechanism was established, the relevant restrictions were adhered to, and contingency plans were developed to minimize the negative impact of these restrictions.
Although ignoring the content of the contingency plan, HUAWEI's experience has already demonstrated for these companies.
Some media reported that after knowing that they would be listed in the "entity list", HUAWEI made an urgent purchase of parts and components, which, to some extent, won a lot of time for HUAWEI.
And those companies that have already received information from May this year may also have been stocking up in large areas to counteract the adverse effects of the inclusion in the entity list. More importantly, China's technology companies are also stepping up research on alternative products, which will, to some extent, replace the restricted products.
For example, in September 25th this year's cloud habitat conference, Alibaba's flat headed semiconductor company released the AI reasoning chip containing 800 light. In May this year, according to the technology released cloud intelligent visual reasoning chip "search", Cambrian, HUAWEI and other companies have also launched a variety of AI chips.
Perhaps due to adequate preparation, the US side released its entity list today, which has not caused too much shock in the Chinese scientific and technological circles. The United States has not yet suspended the brand of aiboke, a 1.63% drop in the whole day, and only 2.67% in the HKUST.
On the contrary, under the unilateral action of the United States, the enthusiasm of China's independent research and development is being stimulated.
Prior to this, HUAWEI, Hikvision, zhongshuo dawning and many other Chinese technology enterprises were listed in the US entity list. Feng Shengzhong, director of the National Supercomputing Center of Shenzhen, said in a media interview that this is a good thing to some extent. "If the US has been banned, Chinese chip companies will have food."
Feng Shengzhong's view is that the prohibition of the United States will lead to the choice of China's domestic chip which once was not seen, and "the chain of China's information industry has been relatively complete, which can almost meet all the replacement needs of related enterprises".