Trump administration adds China’s SMIC and CNOOC to blacklist
- In a move likely to escalate tensions with Beijing, the US defence department designates four additional companies as having links to the Chinese military
- China Construction Technology Co. and China International Engineering Consulting Corp were also added to the list
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, including China Construction Technology Co. and China International Engineering Consulting Corp.
The move, first reported by Reuters on Sunday, brings the total number of companies blacklisted to 35. While the list did not initially trigger any penalties, a recent executive order issued by President Donald Trump will prevent US investors from buying securities of the blacklisted firms starting late next year.
The Chinese embassy in Washington, Semiconductor Manufacturing International Corp (SMIC) and China National Offshore Oil Corp (CNOOC) did not immediately respond to requests for comment.
Shares of CNOOC’s listed unit CNOOC Ltd fell by nearly 14 per cent following the Sunday report.
SMIC, which relies heavily on equipment from US suppliers, was already in Washington’s crosshairs. In September, the US Commerce Department informed some firms they needed to obtain a licence before supplying goods and services to SMIC after concluding there was an “unacceptable risk” that equipment supplied to it could be used for military purposes.