(Yicai Global) July 12 -- Shares of Kyland Technology and Wuhan Raycus Fiber Laser Technologies, two of the 23 Chinese companies the US government added to a blacklist last week, climbed after the pair said the impact is manageable.

Kyland [SHE: 300353], a developer of core hardware and software technologies for the industrial internet, soared 5.7 percent to CNY10.32 (USD1.59) today, while laser equipment maker Raycus Fiber Laser [SHE: 300747] rose 1.8 percent to CNY106.40 (USD24.77). The overall Shenzhen market gained 2.1 percent.

The US commerce department added a total of 34 entities to its so-called Entity List on July 9 for involvement in, or risk of becoming involved in, activities contrary to the foreign policy and national security interests of the US. China’s commerce ministry called it an unjustified suppression of Chinese businesses and a serious breach of international economic and trade rules.

Despite being blacklisted, Beijing-based Kyland said in a statement today that its domestic operations and exports to the United States and other countries would not be directly affected, adding that it had prepared in advance for possible market risks.

“The impact of this matter on the company’s production, operations and business layout is manageable,” Kyland said.

The commerce department added Raycus for possible involvement in the procurement of unauthorized military end-use items originating in the US, the Wuhan-based firm said yesterday. It will not have a material impact on research and production, and will not affect products and services, it said.

Stating that China firmly opposes the move, the commerce ministry urged the US to immediately correct its wrongdoings. China will take all necessary measures to resolutely safeguard its legitimate rights and interests, it warned.

Editor: Peter Thomas