(Yicai Global) May 25 -- Several Chinese tech companies, including web security giant Qihoo 360 Technology and video surveillance firm NetPosa Technologies, have said they are unfazed by their inclusion on the US’ so-called Entity List, which limits their ability to do business with American firms.

Qihoo independently researches its own technologies and products and holds the rights to them, the Beijing-based company said in a statement, adding that having its name on the list will not affect daily business but may slow its expansion plans.

NetPosa, also based in Beijing, said in a statement yesterday that it does most of its business in China and Southeast Asia. It does not operate in the US and has no plans to do so in the foreseeable future, so the inclusion will have no impact on operations and production, the firm added. NetPosa is constantly trying to shift toward buying more domestic-made items, it said.

The US Department of Commerce added 33 Chinese companies and organizations to the Entity List on May 22, prohibiting American companies from trading with them without specific authorization. The new inclusions cover a broad range of sectors, from telecoms to precision optics, and the department believes they are guilty of either human rights abuses or of having ties with military activities.

Shares in Qihoo 360 Security Technology [SHA:601630] rose this morning but finished the day 0.4 percent down at CNY17.54 (USD2.46), while NetPosa [SHE:300367] opened with the maximum 10 percent gain and stayed there all day, closing at CNY3.29.

“We are sad to hear about the decision but were prepared for the event,” CloudWalk Technology, a privately held developer of facial recognition technologies and supplier to major Chinese banks, said in its statement on the issue.

CloudWalk has been operating within the law in all regions it operates and the firm’s services are capable of creating healthy growth in artificial intelligence technologies while adhering to strict ethical standards, the Guangzhou-based company added.

Editor: James Boynton