The US Department of Commerce (DOC)’s Bureau of Industry and Security (BIS) has added 37 companies from various countries and industries to its trade blacklist, including 28 Chinese entities. Among the China-based companies are three subsidiaries of genomics giant BGI Group: BGI Research, BGI Tech Solutions (Hongkong) Co., Ltd, and Forensic Genomics International. The BIS justified the listing by stating, “The actions of these entities concerning the collection and analysis of genetic data present a significant risk of diversion to China’s military programs.”
BGI Group’s US Presence and Services
BGI Group has a significant presence in the North American market, with its headquarters in Cambridge, Massachusetts, and an operational site in San Jose, California. The company offers a range of services to US customers, including whole genome sequencing, RNA sequencing, single cell sequencing, and proteome profiling and label-free DIA using mass spectrometry. BGI also has several partnerships with US-based firms, such as a collaboration with Natera Inc. (NASDAQ: NTRA) that began in 2019. This partnership led to the development of Signatera, a circulating tumor DNA (ctDNA)-based test for minimal residual disease (MRD) in cancer patients, which has been launched in China.
Implications of the Entity List
The DOC’s “Entity List” is compiled by the End-User Review Committee (ERC), chaired by the DOC, and includes representatives from the State, Defense, Energy, and Treasury departments. Companies listed on the Entity List are barred from receiving exports or transfers of US technologies. However, US persons and companies are still permitted to purchase items from these listed companies. This restriction aims to control the flow of sensitive technologies while allowing for certain commercial interactions to continue.-Fineline Info & Tech
