President Trump’s administration has added China’s top chipmaker, SMIC, and oil giant, CNOOC to a blacklist of companies allegedly owned by the Chinese military. The move has drawn condemnation and dismay from Beijing as President Trump prepares to leave office in January 2021.
By reason of a recent executive order by President Donald Trump; adding the companies to the list will prevent U.S. investors from investing in the firm from late 2021. Adding SMIC and CNOOC takes the total number of blacklisted companies to 35.
A Chinese foreign ministry spokeswoman said China opposed the efforts to suppress its companies. She also said that the moves run counter to principles of market competition.
“The U.S. should stop abusing national power and national security concepts to suppress foreign companies,” Hua Chunying said at a news briefing.
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SMIC also said it strongly opposes the decision; and it reflects a fundamental misunderstanding by the US administration of the end-uses of its business and technology.
CNOOC says it is “shocked and regretful” of its addition to the list. It also says on its website the addition is based on “false and inaccurate information”.
CNOOC known as China National Offshore Oil Corp, says it is assessing the impact of the situation on the group and would closely monitor developments.
On Wednesday 2nd December 2020, the US House of Representatives passed a law to ban Chinese companies from US stock exchanges if they do not fully comply with the country’s auditing rules. This will probably arm President Trump with more firepower against Chinese companies before handing over.
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