Shares in Chinese healthcare and technology firms tumbled on Wednesday after a report that the United States would add more Chinese firms, including the largest commercial drone maker and biotech firms, to investment and export blacklists this week. Francis Maguire reports.
The world’s biggest commercial drone maker looks set to go on a U.S. investment blacklist.
DJI is among eight firms added, according to the Financial Times newspaper.
It says the U.S. Treasury Department is targeting DJI and others after allegations they were involved in surveillance of the country’s Uyghur Muslim minority.
China’s Foreign Ministry criticised the reported move.
“We urge certain people in the U.S. to abandon the Cold War mentality and ideological prejudice, and stop the abuse of state power to unreasonably suppress China’s specific fields and enterprises.”
A DJI spokesperson declined to comment on the report.
Though they did link to a statement from a year ago, when the company claimed it had done nothing to justify a move against it.
The Financial Times also reported the U.S. commerce department would place a number of Chinese firms on a so-called ‘entity list’.
That would restrict exports to those companies by U.S. businesses.
Shares in related firms skidded in Wednesday trade.
Chinese healthcare stocks were down 3.2% in afternoon trade, and the sell-off was even sharper in Hong Kong, at 7.6%.
Another major Chinese AI start-up, SenseTime, was also added to the Treasury blacklist just days ago.
The company was then forced to postpone its $767 million Hong Kong IPO.
