Home » Business Tips » Trump to add China’s SMIC and CNOOC to defense blacklist: Reuters

Trump to add China’s SMIC and CNOOC to defense blacklist: Reuters

A CPU socket and a close image of the motherboard lie on the table.

Naruman Bovonitavanchai | Moment | Getty Images

The Trump administration is set to add China’s top chipmaker SMIC and national offshore oil and gas producer CNOOC to a blacklist of alleged Chinese military companies that, according to a document and s, curb their access to US investors and appear before the president Seeding increases stress with the week. Election Joe Biden assumes office.

Reuters reported earlier this month that the Defense Department was planning to nominate four more Chinese companies owned or controlled by the Chinese military, bringing the number of Chinese companies to 35.

The new installment, to be published in the Federal Register, was not immediately clear. But the list includes China Construction Technology and China International Engineering Consulting, in addition to Semiconductor Manufacturing International Corp (SMIC) and China National Offshore Oil Corp (CNOOC), according to the document and three s.

The Department of Defense (DoD) did not respond to a request for comment.

With similar policies, the move is being seen as an effort to consolidate China’s legacy of Republican President Donald Trump and to elevate Democrat Biden to radical positions in Beijing amid anti-Beijing sentiment in Congress is.

The list is also part of a broader effort by Washington to target Washington as an effort to enlist corporations to exploit emerging civilian technologies for military purposes.

Reuters reported last week that the Trump administration is close to declaring that 89 Chinese aerospace and other companies have military ties, banning them from purchasing a range of American goods and technology.

SMIC was already in the crosshairs of Washington. In September, the US Commerce Department banned exports to the company after posing an “unacceptable risk” that equipment supplying it could be used for military purposes.

The list of “communist Chinese military companies” required the 1999 Pentagon to compile a catalog of companies “owned or controlled” by the People’s Liberation Army, but the DoD only complied in 2020. Giants like Hikvision, China Telecom and China. Mobiles were added earlier this year.

This month, the White House published an executive order, first reported by Reuters, that sought to give teeth to the list by barring US investors from buying securities of black-listed companies from November 2021.

Firms are unlikely to deal with a serious blow to the firm, experts said, due to its limited scope, uncertainty about the Biden administration’s stance and already scattered holdings by US funds.

Still, among other measures, it deepens the rift between Washington and Beijing, already loggerheads on coronoviruses and China’s rift over Hong Kong.

Congress and the administration have increasingly sought to curb the US market penetration of Chinese companies not following the rules faced by US rivals, even if it means opposing Wall Street.

Related Posts