Wuxi Biologics (HKG: 2269) is reportedly on the verge of being removed from a US Department of Commerce restricted trade list, a development first reported in February this year. This news has significantly boosted the firm’s valuation, wiping away HKD 77 billion (USD 9.9 billion) in losses. Chinese authorities permitted a US export control officer to inspect WuXi Bio’s operations in Wuxi city last week, as confirmed by the US Department of Commerce. Consequently, WuXi’s stock price has climbed 16% over the past five days.
Background and Impact
In February, the US Commerce Department’s Bureau of Industry and Security added two of WuXi Bio’s subsidiaries in Wuxi and Shanghai to its Unverified List (UVL). This action was due to the inability of US government agencies to conduct required end-use verifications for certain equipment exports from US suppliers, a process disrupted by COVID-19 pandemic conditions over the past two years. Being listed on the UVL meant that WuXi Bio’s subsidiaries were ineligible to receive items subject to the US Export Administration Regulations (EAR) without a license exception. Following the recent inspection, it is expected that WuXi Bio will be removed from the UVL in the near term.-Fineline Info & Tech
