WASHINGTON, December 4
The Trump administration on Thursday added China’s top chipmaker, SMIC, and oil giant CNOOC to a blacklist of alleged Chinese military companies, a move likely to escalate tensions with Beijing before President-elect Joe Biden takes office.
The Department of Defence designated a total of four additional companies as owned or controlled by the Chinese military, also including China Construction Technology Co Ltd and China International Engineering Consulting Corp.
The move brings the total number of companies blacklisted to 35. While the list did not initially trigger any penalties, a recent executive order issued by Republican President Donald Trump will prevent US investors from buying securities of the blacklisted firms starting late next year. The Chinese Embassy in Washington referred Reuters to prior remarks made by its Foreign Ministry spokesperson that “China firmly opposes the politicisation of the relevant Chinese companies”. China National Offshore Oil Corp (CNOOC) did not respond immediately to a request for comment. The SMIC said in a stock market statement that it strongly opposes the decision of the United States Department of Defence, which reflects a fundamental misunderstanding by the US administration regarding the end-uses of its business and technology.
The company also said there is no major impact of its addition to the list. The expanded blacklist is seen as part of a bid to cement Trump’s tough-on-China legacy and to box Biden, the Democratic president-elect who takes office on January 20, into hardline positions on Beijing amid bipartisan anti-China sentiment in Congress.
The measure is also part of a broader effort by the US to target what it sees as Beijing’s efforts to enlist corporations to harness ivilian technologies for military purposes. — Reuters
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It’s discriminatory, says Beijing
- China’s securities regulator said US legislation targeting US-listed Chinese companies is “discriminatory”.
- The US Congress has passed legislation that would force Chinese firms to delist from US exchanges unless they abide by the country’s accounting rules.
- The China Securities Regulatory Commission said China was open to addressing the US concerns.
35 firms on list
- The move brings the total number of blacklisted companies to 35.
- The SMIC said it strongly opposes the decision of the United States Department of Defence, which reflects a fundamental misunderstanding by the US administration.