The Trump administration is apparently planning on making another move against Chinese corporations. This time, the President seeks to add SMIC and CNOOC to its blacklist of alleged Chinese military companies.
According to a Reuters report, documents and sources have surfaced, which claim that Donald Trump is aiming to add to new companies to the blacklist over alleged ties with the Chinese government. Reportedly, the administration plans on cutting their access to US investors, which will likely raise the tensions between Beijing and Washington. This also arrives weeks before the President-elect Joe Biden takes office as the next president of the United States.
Previously, it was reported that the DOD (Department of Defense) was planning on designating four more Chinese firms as owned or controlled by the Chinese military. The new companies being added to the blacklist would bring the number of Chinese companies affected to 35 in total. For those unaware, SMIC is the top chipmaker in China while CNOOC is a known Chinese offshore oil and gas producer.
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Furthermore, a recent executive order issued by the President Trump would prevent US investors from buying securities of the listed firms starting next year. While it is unclear when the administration will add both firms to the list, documents and three sources have pointed at SMIC (Semiconductor Manufacturing International Corp) and CNOOC (China National Offshore Oil Corp) being added soon to the Federal Register.
SMIC has since stated that it will continue “to engage constructively and openly with the U.S. government,” and even refuted the allegations and saying that its products and services were solely for civilian and commercial use rather than military. It further added that it “has no relationship with the Chinese military and does not manufacture for any military end-users or end-uses.” SMIC heavily relies on equipment from US suppliers, so facing scrutiny by the Trump administration might create significant obstacles in its operations.
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