Trump to Blacklist 2 More Chinese Firms

NTD Newsroom
By NTD Newsroom
December 1, 2020NTD Business
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Reuters reports the Trump administration will blacklist China’s top chipmaker, SMIC, and its largest offshore oil and gas producer CNOOC. The companies are allegedly tied to the Chinese military.

The Trump administration views CNOOC’s deep-sea drilling in the South China Sea as a military operation.

The blacklist means they will have little access to U.S. investors and will be restricted from buying a range of U.S. goods and technology.

It’s not known when these companies will be added to the federal register.

Earlier in November, the White House published an executive order prohibiting U.S. investors from buying securities of companies it has blacklisted beginning this time next year.

It’s all part of a broader effort by Washington to target what it sees as Beijing’s efforts to use emerging tech for military purposes.

Shares in CNOOC fell by almost 14 percent after the report. The company says it hasn’t received any formal notice from U.S. authorities.

SMIC issued a statement saying it only makes products for civilian or commercial use. Its shares dropped nearly 3 percent on Monday.

Congress and the administration have sought increasingly to curb Chinese companies that don’t comply with American rules from accessing the U.S. market.

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