Bgi and 13 other companies have been included in the US list of 'military involvement'.

Following the "Sanctions list" of the US Treasury Department, the "Unverified List (UVL)" of the US Department of Commerce's Bureau of Industry and Security, and the "Preparatory Delisting list" disclosed by the US Securities and Exchange Oversight Commission, the US Department of Defense recently published the latest version of the "Chinese Military Companies List". CMC for short).

The updated list includes 13 Chinese companies, including BGI.

China CRRC Corporation Limited, China State Construction Corporation Limited, China National Chemical Corporation Limited, China International Engineering Consulting Company Limited and other well-known central enterprises in the list, BGI is not immune, why?

What is a CMC checklist?

It is reported that the CMC list was issued by the US Department of Defense under Section 1260H of the National Defense Authorization Act for Fiscal Year 2021, which refers to these companies as "Chinese military companies directly or indirectly operating in the United States."

On June 3, 2021, the list of 47 Chinese military-related companies operating in the United States was published for the first time. The list included Huawei Technologies Co., LTD., Hangzhou Hikvision Digital Technology Co., LTD., SMIC International Integrated Circuit Manufacturing Co., LTD., and many other well-known high-tech companies.

In addition to the 13 companies announced recently, a total of 60.

According to the US Treasury, the CMC list is a prohibited list, that is, a list of prohibited or restricted investments, and is also prohibited from buying or selling publicly traded securities.

This means that the listed companies will face greater obstacles to cross-border acquisitions, investment and financing in the United States.

Notably, the U.S. is tightening its scrutiny of cross-border acquisitions.

On September 15, 2022, the President of the United States signed an executive order to ensure "robust review of evolving national security risks by the Committee on Foreign Investment in the United States (CIFUS)," the first presidential executive order since CIFUS was created in 1975, The directive "defines other national security factors that the CIFUS needs to consider when evaluating transactions".

The executive order will allow CFIUS to focus on vetting certain types of deals that the United States believes will give foreign powers access to technology critical to American economic growth.

Key restricted areas include "microelectronics, artificial intelligence, biotechnology and biommanufacturing, quantum computing, advanced clean energy and climate adaptation technologies", among others.

Just before and after the executive order was signed, two Chinese biotech cross-border acquisitions in the United States have been hit by CIFIUS crackdown.

On September 15, 2022, F-Star, a NASDAQ listed company, issued a notice that China Biopharmaceual's cross-border acquisition failed to pass the routine 30-day CFIUS review and entered a 45-day investigation period, and the review period may continue to be extended.

On September 18, 2022, Clarion issued a board resolution announcement to officially announce the termination of the acquisition of Snapdragon.

In fact, this is not the first time BGI has been sanctioned by the United States.

On July 20, 2020, the Bureau of Industry and Security of the US Department of Commerce put two subsidiaries of BGI on the entity List, namely Xinjiang Silk Road BGI and Beijing Liuhe BGI, which means that the company is denied trade opportunities in the United States.

In the context of the global epidemic, the escalation of Sino-US confrontation, and the accelerated reconstruction of global supply chain and industrial chain, the United States has increasingly imposed sanctions on foreign enterprises, especially in the biomedical field, which is more common and more prominent, and the United States' "list management" methods have emerged in an endless fashion.

Why is BGI "hurt"?

As one of the benchmarks in the field of precision medicine in China, BGI is the only genetic testing company in China that covers the whole application field of gene sequencing, involving reproductive health, tumor prevention and control, infection prevention and control, and precision medicine testing comprehensive solutions.

Since its birth in 1999, BGI has been present in every major public health event in the world:

The genome sequence of the first SARS virus in China;

The genome sequence of the first highly pathogenic avian influenza virus to infect a human;

The genome sequence of the first Streptococcus suis strain to infect humans;

The first Zika test kits, Ebola test kits;

The discovery and diagnosis of severe fever with thrombocytopenia syndrome caused by novel bunyavirus;

Diagnostic reagents for human infection with H7N9 avian influenza;

Novel coronavirus nucleic acid detection and diagnostic reagents......

Before the COVID-19 pandemic, the basic research and clinical application services of reproductive health were the main revenue of BGI.

After the COVID-19 epidemic, the main business of biomedical enterprises has been more or less affected by the epidemic.

Among them, only a few can participate in the whole process of global COVID-19 fight, and BGI is undoubtedly one of the best.

With its "double-line layout" in kit sales and "Huoyan" laboratory services, and outstanding international operation capabilities, BGI has played a beautiful one-two match in this epidemic.

Bgi has been targeted by the US government for many times.

On the other hand, the core logic of BGI's development is the national biosafety strategy.

The national Gene Bank is known as the gold bank by the outside world. The state has invested 10 billion yuan to build the national gene bank of "public welfare scientific research and industrial infrastructure to serve the national strategic needs", and BGI has played an important role in it.

As it is related to national strategic security and the commanding height of superposition frontier technology, BGI, the "protagonist", of course, has attracted attention.

It is also the focus of the US government that confirms that BGI has achieved a place in the global science and technology map and has begun to lead the development direction.

With the escalation of Sino-US trade frictions, China has become an important competitor of the United States in the field of life and health.

From raw materials to preparations, from detection to treatment, from market to technology, from basic research to industrial transformation, from data security to human experience, China is likely to encounter an increasingly severe international competitive environment in all aspects of the life and health industry.

Under the new development situation, the enterprise must adhere to innovation-driven development, based on medical science free-standing self-improvement, focus on key core technology research and speed up resolution of a batch of medicines, medical equipment, medical equipment, vaccines, thetime "problem in the field of testing, etc, to promote overall health innovation in science and technology strength, foster healthy new industries, new forms and new patterns, Contribute to the construction of healthy China.