WASHINGTON (Reuters) – The Trump administration on Thursday fired China’s top chipmaker, SMIC. And oil giant CNOC. Added to the alleged blacklist of Chinese military companies, with President-elect Joe Biden likely to escalate tensions with Beijing before taking office.
The Department of Defense appointed a total of four additional companies owned or controlled by the Chinese military, including China Construction Techno Co., Ltd. and China International Engineering Consulting Corp.
The move, first reported by Reuters on Sunday, brings the total number of blacklisted companies to 35. While no penalties were initially imposed on the list, a recent executive order issued by Republican President Donald Trump would prevent U.S. investors from buying blacklisted securities. Companies start late next year.
The Chinese embassy in Washington, D.C., quoted Reuters as saying earlier in the day that “China strongly opposes the politicization of Chinese companies.”
China National Fisher Oil Corp (CNOC) did not immediately respond to a request for comment.
SMIC said in a stock market statement that it was evaluating the impact of its addition to the list and said investors should be aware of the risks of investing. Shares of SMIC fell more than 2% on Friday before the company’s Hong Kong stock traded down, while CNOOC fell 0.7% in early morning trading.
Shares of CNOOC Ltd, a listed unit of CNOOC, fell nearly 14 per cent after Sunday’s report.
S.I.M.C., which is a U.S. Relying heavily on suppliers’ equipment, it was already in Washington’s Crosshairs. In September, U.S. The Commerce Department informed SMICs of some of the fees required to obtain a license before supplying goods and services that there was an “unacceptable risk” that the equipment provided to it could be used for military purposes.
Amid bipartisan anti-China sentiment in Congress, an extensive blacklist is being seen to limit Trump’s strict on-China non-China legacy and to box down Democratic President-elect Biden. .
The move is part of a broader effort by Washington to target Beijing’s efforts to register corporations to use emerging civilian technologies for military purposes.
The list of “communist Chinese military companies” was mandated by the People’s Liberation Army’s 1999 list of “owned or controlled” companies, but the DOD only complied in 2020. Giants like Hikvision, China Telecom and China Mobile were added earlier this year.
In November, the White House released an executive order, the first of which was reported by Reuters, which reported that the U.S.
Top US asset managers are Vanguard Group and BlackRock Inc. BLK.N CNOC Listed Unit of CNOC Ltd. owns about 1% of the shares, and SMIC. No. owns about 4% of the remaining shares, declares.
The Congress and the Trump administration have sued U.S. companies for not complying with the rules faced by American rivals. The market has become increasingly demanding to stop b-access, even if it means opposing Wall Street.
On Wednesday, the U.S. House of Representatives passed a law allowing Chinese companies to kick the U.S. stock exchange if they do not fully comply with the country’s stock dating rules, giving Trump one more tool to threaten Beijing before leaving office.
Reported by Alexandra Alper and Humera Pamuk; Additional reports by Meg Shen in Hong Kong, Luoan Liu and Brenda Goh in Shanghai and Mike Stone in Washington; Edited by Tom Brown and Leslie Adler
.
