(Yicai) Feb. 7 -- Illumina is in talks with relevant authorities to find a valid solution, the US gene sequencing giant said after being added to China's unreliable entity list.

"The company is actively communicating with relevant authorities to seek solutions," Illumina told Yicai. "There is no further information to disclose at this time."

On Feb. 4, China's Ministry of Commerce added Illumina to its unreliable entity list for violating fair market trading principles by cutting ties with Chinese firms and taking discriminatory measures that severely harm their legitimate rights and interests after the US government decided to impose a 10 percent import tariff on Chinese goods. The firm will now face fines and restrictions on imports and exports, investments, and personnel entry.

Illumina has a long-standing presence in China, a spokesperson said in an emailed statement on Feb. 5, Medtech Dive reported on the same day. "Whether Illumina operates, we comply with all laws and regulations," the spokesperson noted. "We are assessing this announcement with the goal of finding a positive resolution."

There are three main companies capable of independently developing and mass-producing gene sequencers globally. They are Illumina, US' Thermo Fisher, and China's MGI Tech.  

After being added to China's unreliable entity list, Illumina will face further challenges in the local market in addition to shrinking market share due to the expansion of MGI.

MGI’s market share in the Chinese market surpassed Illumina's for the first time in 2022. In the first three quarters of last year, Illumina's revenue from the Chinese market plunged 25 percent to USD228 million from a year earlier.

Editor: Futura Costaglione