Trump so as to add China’s SMIC and CNOOC to protection blacklist: Report

WASHINGTON: The Trump administration is poised so as to add China’s high chipmaker SMIC and nationwide offshore oil and fuel producer CNOOC to a blacklist of alleged Chinese army firms, in response to a doc and sources, curbing their entry to US buyers and escalating tensions with Beijing weeks earlier than President-elect Joe Biden takes workplace.
Reuters reported earlier this month that the division of protection (DOD) was planning to designate 4 extra Chinese firms as owned or managed by the Chinese army, bringing the variety of Chinese firms affected to 35. A latest govt order issued by President Donald Trump would stop US buyers from shopping for securities of the listed companies beginning late subsequent yr.
It was not instantly clear when the brand new tranche, could be revealed within the Federal Register. But the checklist includes China Construction Technology Co Ltd and China International Engineering Consulting Corp, along with Semiconductor Manufacturing International Corp (SMIC) and China National Offshore Oil Corp (CNOOC), in response to the doc and three sources.
SMIC stated it continued “to interact constructively and brazenly with the US authorities” and that its services had been solely for civilian and industrial use. “The firm has no relationship with the Chinese army and doesn’t manufacture for any army end-users or end-uses.”
The DOD, the Chinese embassy in Washington and CNOOC didn’t instantly reply to requests for remark.
SMIC, which depends closely on gear from US suppliers, was already in Washington’s crosshairs. In September, the US commerce division knowledgeable some companies that they should get hold of a license earlier than supplying items and providers to SMIC after concluding there was an “unacceptable threat” that gear provided to it could possibly be used for army functions.
The upcoming transfer, coupled with related insurance policies, is seen as looking for to cement outgoing Republican President Donald Trump’s tough-on-China legacy and to field incoming Democrat Biden into hardline positions on Beijing amid bipartisan anti-China sentiment in Congress. The Biden marketing campaign declined to remark.
The checklist can be a part of a broader effort by Washington to focus on what it sees as Beijing’s efforts to enlist firms to harness rising civilian applied sciences for army functions.
Reuters reported final week that the Trump administration is near declaring that 89 Chinese aerospace and different firms have army ties, proscribing them from shopping for a variety of US items and expertise.
The checklist of “Communist Chinese Military Companies” was mandated by a 1999 regulation requiring the Pentagon to compile a catalog of firms “owned or managed” by the People’s Liberation Army, however DOD solely complied in 2020. Giants like Hikvision, China Telecom and China Mobile had been added earlier this yr.
This month, the White House revealed an govt order, first reported by Reuters, that sought to offer enamel to the checklist by prohibiting US buyers from shopping for securities of the blacklisted firms from November 2021.
The directive is unlikely to deal the companies a severe blow, specialists stated, because of its restricted scope, uncertainty concerning the stance of the Biden administration and already-scant holdings by US funds.
Still, mixed with different measures, it deepens a rift between Washington and Beijing, already at loggerheads over the China’s dealing with of the coronavirus and its crackdown on Hong Kong.
Congress and the administration have sought more and more to curb the US market entry of Chinese firms that don’t adjust to guidelines confronted by American rivals, even when meaning antagonizing Wall Street.

Source link